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How To Handle Employee Theft Punishment


Terminating an employee? Here's what you must consider before firing.

 

 

When you hire a new employee, trustworthiness is a key assessment. Even with background searches and reference checks, you still might hire a thief.

Employee theft in the workplace is not unheard of. From stealing five bucks out of a register to embezzling thousands from your company, employee theft has to dealt with by using some form of punishment. So how do you deal with employee theft? Punishment is the only way.

Employee theft is like a forest fire. It can spread quickly from one employee to dozens. To combat this fire, it’s important that you make an example of an employee committing the theft through quick punishment. If you are suspicious of employee theft, make sure you have a punishment plan in place before you take action.

Once you suspect an employee of theft, pay attention to their actions and keep an eye on their behavior in the workplace. Thoroughly check any receipts and track all of their contact with money. Keep any suspicion of employee theft to yourself or confide in upper management. (This assumes that they are not part of the theft.)

Once you have the evidence you need to take action, don't hesitate. The longer you wait before punishing theft, the more money your company could potentially lose.

Employee theft punishment is a difficult area to tackle. There are always many hard decisions when punishing or disciplining for employee theft. It gets especially tricky if you have employed the thief for a longtime or if you have a friendship with them.

Here are some helpful tips for addressing the employee theft punishment:

* Approach the employee who has committed the theft in a private setting, but make sure you have another member of management or ownership to witness the punishment.

* Have all of your evidence and witnesses ready.

* Decide before the meeting if you plan to press charges. If you do, call the police before the meeting.

* If you expect trouble, ask security to sit in the meeting, or stay outside the door for any support

* Decide which punishment is suitable for the employee theft. If the theft was minor, like an employee taking home supplies, you may just want to issue a written warning. If the employee theft was major, like embezzlement, the punishment must be more severe.

* Keep the meeting professional and quick. Address the problem quickly and be blunt. Employees who commit theft often think that they can outsmart the company and will be defensive immediately. As long as you’re prepared, they cannot talk themselves out of trouble.

*If you have decided to terminate the employee committing theft, have the termination papers drawn up and cut a check for their remaining pay. (If you do not plan to cut a final check because of the size of theft, have the paperwork ready. This would include a copy for your records and a copy for the employee listing the amounts stolen and how you took this from their pay.) Sever ties immediately and the employee who committed the theft will not have an excuse to return to the building.

The moment you suspect employee theft, gather evidence and decide punishment. Deal with the problem as quickly as possible.

The employer's guidebook to progressive discipline and employee termination

 

 
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