How to Confront Employees About Theft

In our last post, we discussed how to prevent employee theft from occurring. However, not all theft can be mitigated, which is why a Crime Insurance Policy is a must. What happens when a client experiences theft in their business? It can be a tricky situation to navigate, which is why we have comprised a list of tips to help them avoid additional risk and resolve the issue. Share the following information with them regarding how to confront employees on theft.

Follow the policy.

To prevent them from landing themselves in a serious legal case, ensure your clients have a strict policy on theft and how it will be handled. This could mean the difference between easily letting someone go and recuperating funds and getting stuck with an extended court case.

Be cautious of the words used.

Remember, the word “theft” is a minefield all by itself. Used in the wrong circumstances it could expose your company to litigation, a defamation claim, or worse. It’s better to accuse the employee of “violating company policy” or of a “cash handling violation” than accusing him or her of “theft,” explains i-Sight.

Have strong evidence.

Employees cannot claim discrimination or unfair termination when your clients have caught them red-handed. Video is preferred, but witnesses can also work. Gather facts and compile documentation; audit computer files, financial records; preserve evidence, such as documents, computer files and e-mails; and maintain a chain of custody to prove the evidence wasn’t tampered with. Document all steps and summarize your interviews. The investigative report may be important in the event of any subsequent legal action, states the article.

Terminate the employee.

Immediate termination is recommended, but only if it follows the company policy. Ensure proper documentation is recorded and the relative stakeholders or union representatives are notified immediately, as well. Upon issuing their last paycheck, your clients should refrain from deducting any money owed that they have stolen as there are likely state restrictions governing this.

About Genesee General

At Genesee General, we are dedicated to providing the custom-tailored solutions your clients’ businesses need to thrive. For 34 years, we have continued to provide quality and affordable insurance policies including professional liability, employment practices, cyber liability, and more. For more information, contact us today at (800) 282-8755.

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