Unfortunately, stealing at work, which is often termed theft in the workplace, impacts many businesses. National figures indicate that over 4,500 workers were found to be stealing from their employers during 2025. Dealing with employee theft can be a difficult process for employers so it is important that you know how to handle employee theft effectively and in a fair and competent manner if it occurs in your workplace.
In this article, we look at some of the issues surrounding theft in the workplace.
What is Theft in the Workplace?
Employee theft is when an employee steals, uses, or misuses an employer’s property or assets without permission. It covers stealing money, stock, time and personal data/ business knowledge from the workplace.
For example, giving a discount to friends and family without permission, claiming for expenses that were not incurred, using business facilities or materials for non-work purposes and taking commercially sensitive information about a product or design can all amount to theft.
Can an Employer Sack an Employee for Theft?
Theft in the workplace usually amounts to an act of gross misconduct - normally a lawful ground for summary dismissal. This means dismissal can occur without notice or payment in lieu of notice. Conduct is one of the five potential dismissal reasons under the Employment Rights Act 1996 (ERA), however the employer still needs to have acted reasonably and followed a full and fair procedure.
It is, therefore, necessary for employers to have a disciplinary procedure in place that sets out a process for dealing with allegations of misconduct in a fair and lawful manner before the dismissal takes place. Failure to follow such a process may result in the employee bringing a tribunal claim for unfair dismissal.
How to Investigate Theft in the Workplace
Where you suspect an employee of theft in the workplace, it is essential that you first investigate the allegations to gather evidence in order to make an objective decision. Theft is a serious accusation to make and it is, therefore, very risky to take disciplinary action without sufficient evidence or merely based on a hunch, hearsay or rumour alone.
Employers should also act fairly and consistently in their approach to theft-related investigations - especially if there have been previous incidents - to avoid complaints of discrimination.
It is also important that the investigation is carried out discreetly and that knowledge of the allegations and investigations is restricted only to a small pool of individuals. This helps to prevent rumours and gossip while the matter is being resolved.
Conducting an Investigation
The first step is to appoint an impartial investigator who can either be someone within the office or, if it is more appropriate, an external party.
The investigation should adhere to any specific policies you have on workplace theft and should be fully documented. It must be fair and based on evidence alone. Evidence can be collected by various means, for example, by checking computer records, CCTV footage (see below) attendance sheets or stock records. However, you cannot gather evidence by going through the accused employee’s personal bags, lockers or desk drawers without their permission or a contractual right.
Where you have caught someone red-handed putting goods into their bag, this will require a lot less investigation than where you have a stock deficiency and no evidence as to who has committed the crime.
Failure to conduct a proper investigation may undermine the disciplinary process and leave you exposed to a claim for unfair dismissal in an employment tribunal.
The Hearing
If the suspicion proves to be unfounded, no further action should be taken. If, however, the investigation provides firm evidence of employee theft, then the employee should be invited to a disciplinary hearing. In such circumstances, the employer should clearly explain in writing what the allegations are, the process that will be followed and the possible repercussions should the allegations be upheld.
At the hearing, the accused employee should be given the chance to hear and respond to the evidence and to put forward their case. It is important that the employee has the opportunity to give their side of the story as this is part of the process of fairness and impartiality.
Once the hearing has taken place, you can then make an informed decision as to whether disciplinary action is needed and whether the police should be involved.
Before disciplining for theft, an employer should be able to demonstrate that;
- they genuinely believed the misconduct had occurred
- had reasonable grounds for this belief and
- that they arrived at this conclusion after a reasonable investigation
Most cases of theft will give rise to the employee’s instant dismissal but there may be circumstances in which you decide the matter can be resolved with internal disciplinary action and a final written warning. If you do allow the employee to stay on, however, you may need to give some thought as to how to make sure that they are well supervised in the future to prevent reoccurrence.
Relevant Policies a Business Should Have in Place
It is useful to have an employee theft policy in place to ensure that employees are aware of what amounts to theft at work and are clear on how such issues will be handled. It also provides a framework for you to follow if you suspect employee theft. It should set out who will take responsibility for the investigation and how it will be carried out. You should also explain the consequences of stealing from work if the employee is found guilty, e.g. disciplinary action or instant dismissal for gross misconduct.
Alternatively, you should have a comprehensive employee misconduct policy that covers theft and how it will be addressed.
Using CCTV Surveillance
It is possible to use CCTV surveillance as evidence in suspected employee theft cases. This is due to the fact that employers are permitted to use CCTV for a legitimate business reason, for example, investigating a suspected theft, so long as they comply with all applicable data guidelines and legislation. However, an employer should ensure that employees are aware that CCTV surveillance is operating in the workplace and the reasons for using it. This is because covert CCTV surveillance (where cameras are secretly fitted) will only be justified in exceptional circumstances.
Preventing Workplace Theft
While it is not possible to eradicate employee theft entirely, there are steps that a business can take to minimise the possibility of it taking place.
A system of effective checks and balances, which includes monitoring of equipment, regular book-keeping and surprise stock audits, and robust cyber-security measures can limit the opportunities any potential thief has to steal from the business.
Surveillance, when used legitimately, and within the confines of the law, is one of the best security measures to ensure that employees are not stealing from the business. Many modern surveillance systems are now reasonably priced and easy to install.
A robust employee theft and/or misconduct policy can also act as a deterrent, especially if staff are aware that you will adopt a no-tolerance policy towards workplace theft.
When Someone is Wrongly Accused of Theft
Sometimes mistakes do happen and innocent people get caught up in theft allegations in error or as a result of a false accusation.
In such circumstances, the wrongly accused employee should cooperate with the investigation and try and clear their name. If they are dismissed as a result of that incorrect allegation, they can appeal against the dismissal and can also bring a grievance against their employer. If they are still unhappy with the outcome, it may be possible for them to bring an unfair dismissal claim against the employer and they should speak to an employment law solicitor or a trade union official where appropriate.
Employment Tribunal
Where an employee wants to challenge their dismissal resulting from an allegation of theft at work, they will need to submit a claim to the tribunal within the usual time limit for issuing an unfair dismissal tribunal claim, which is three months less than one day from the date of their termination.
Under S.94 of the ERA, employees have the right not to be unfairly dismissed from their employment. As mentioned, allegations of theft at work would fall under the potentially fair reason of conduct. However, the employer has to still demonstrate that the dismissal was procedurally fair, i.e. that a fair procedure was carried out before the employee was dismissed and that the dismissal was reasonable in the circumstances.
If you have any questions about employee theft or want help with drafting robust and clear employee theft/misconduct policies, please contact our experienced employment team or email us.
FAQ
What is another term for stealing from work?
Another term for stealing from work is theft in the workplace. It involves any stealing, use, or misuse of the employer’s property or assets without their permission.
Does stealing hours at work also count as theft in the workplace?
Stealing hours or getting paid for work you didn’t do can also amount to theft in the workplace. It includes deliberate time theft, for example, where someone else clocks you in before you turn up to work, or the misuse of work time, for example, reading a book when you should be working. As with other forms of theft, stealing hours can result in gross misconduct but it is more likely that an employer would issue a written or final written warning unless it is a repeat offence.
What should I do if I am caught stealing from work?
If you have been caught stealing from work, you should look at your company’s employee theft or misconduct policy to understand what procedures your employer will put in place to deal with this and what are the likely consequences of your actions. It might be worth talking openly to your line manager, especially if you feel there are some extenuating circumstances that shed some light on why you resorted to stealing. If you feel you have been wrongly accused of stealing, you should consider getting legal advice from a specialist employment solicitor or a trade union official.
Can I be sacked for stealing from work?
Yes, this is possible as theft in the workplace is often considered an act of gross misconduct that allows an employer to dismiss without notice. However, it does not mean that your employer can dismiss you on the spot – they still have to carry out proper procedures before dismissing you.
