By Claire Mansell - 23 Jun 2014
We are increasingly hearing of stories in the media of "trusted"
employees stealing from their employer. Employee theft can take
different forms - from stealing cash from the till to complicated
schemes involving fake invoices and fictitious employees. Whatever
form it takes, employee theft is an awful experience for employers
- financially and emotionally. Below are some steps we can take to
minimise the damage.
Step 1: Dismissal
An employer's first reaction will be to dismiss the employee.
Employers must ensure they follow the correct process. Even if an
employee is caught with their hands in the till, they are still
entitled to be treated fairly. The last thing an employer wants is
for the thief to bring a successful personal grievance on the
grounds of unfair process!
Step 2: Lodging a claim
Employers can make a claim in the Employment Relations
Authority. Alternatively, employers can lay a complaint with the
police, but there is no guarantee that the criminal court will
order the employee to repay the stolen funds. A police complaint
will effectively stall the claim in the Employment Relations
Authority until the criminal proceedings are over.
Step 3: Recovery
Once an employer has a judgment in the ERA, there are a number
of ways to recover your money. For example, an employer can:
- get an order that the employee pay the debt off in weekly
instalments
- be granted a security interest over the employee's
property
- in some circumstances, set off the amount that the employee has
stolen against any unpaid wages and holiday pay
If you have discovered an employee has stolen funds contact Claire
Mansell today to stop a bad situation becoming worse.