Theft | Termination Checklist—TUPE

-

The unauthorised removal of material, assets or services from employers and abuse of their facilities is on the increase. Some estimate the losses from staff theft and fraud to be as high as 5% of sales, and this is an equivalent reduction of profit. Inevitably this problem will be worse where procedure and policing are slack.

Employee Fraud

According to the first 'Fraud Watch' report issued by accountants BDO Stoy Hayward in June 2004, employees perpetrated more than one-third of all reported fraud cases in the previous year. 84% of frauds are perpetrated by men with a median age of 44. Top cities for fraud are London, Birmingham, Glasgow and Liverpool. The authors commented that 'the majority of fraud is committed by employees and directors who know the systems and can override controls'. This pre-supposes that controls exist. In many organisations there is a considerable lack of control which can only encourage more thefts. Making the offer of a job subject to certain conditions as set out in RECRUITMENT may be one way of protecting the organisation.

Expenses

Clear rules regarding expenses are essential - including the maximum expenditure that can be claimed by each level of employee and in respect of what purposes such expenditure can be reclaimed. Stating that expenses will only be authorised for payment when supported by receipts, and/or that VAT on such expenditure will only be reimbursed if there is a VAT receipt can help raise the awareness that there is strict control of expenses. Control of company car expenditure is also essential. Employees should know that such expenses are scrutinised for 'logic' (i.e. that the cost of fuel, for example, is proportionate to mileage and model) etc. See EXPENSES.

Theft Suspicion

If an employee is suspected of theft, care must be taken in dealing with the situation and independent advice might be advisable.

Draft Checklist

  1. Check all the facts, suggestions, evidence and record everything in writing in a logical sequence. If there are witnesses prepared to provide statements, these should be compiled and preserved.

  2. Consider which procedures have been broken and ensure that the persons involved would have been aware of the procedures.

  3. Establish after full investigation who seems to be responsible for the occurrence and check that the evidence seems to support the potential responsibility of the person concerned.

  4. Interview the suspected person(s) (with an independent witness taking notes) and ask for their views and any conflicting accounts.

  5. Re-check the witness statements to try and reconcile any differences.

  6. Re-consider whole body of evidence and data, and attempt to assess responsibility.

The 'beyond reasonable doubt' maxim applicable in the criminal court is not required in employment law. Tribunals apply a triple test:

  1. 'Was there a full investigation of all the circumstances?'

  2. 'Did the employer genuinely believe the loss to be the responsibility of this employee?'

  3. 'Was it reasonable for the employer to apply the sanction (e.g. of dismissal)?'.

Provided the employer has carried out a full and fair investigation and has an honest belief in the guilt of the employee, any subsequent dismissal is likely to be fair - the ruling in the British Home Stores v Burchell case. Equally, if a theft could be the responsibility of two or more employees but the investigation does not disclose which, it may be fair to dismiss all suspected. However, in this case, it could be unwise to dismiss without notice since this implies that each is guilty. Legal advice should be taken.

Comments

Post a Comment

Popular posts from this blog

Canteens and Rest Rooms for Employees-Cooperation, Employee's Duty Of

-
Canteens and Rest Rooms for Employees Key points Whether or not employers are legally-bound to provide their workers with dedicated canteens or rests room will depend in large part on the type of activity or process in which an employer is engaged. Regulation 25(5) of the Workplace (Health, Safety & Welfare) Regulations 1992 - that apply to every workplace - states that 'suitable and sufficient facilities shall be provided for persons at work to eat meals where meals are regularly eaten in the workplace'. By way of explanation, the accompanying Approved Code of Practice points out that 'seats in work areas can be counted as eating facilities provided they are in a sufficiently clean place and there is a suitable surface on which to place food. Eating facilities', it continues, 'should include a facility for preparing or obtaining a hot drink, such as an electric kettle, a vending machine or a canteen'. Furthermore, 'workers who work
Read more

Dismissal for Lack of Qualifications

-
Image
Key points §   'Lack of qualifications' is one of the permitted (or legitimate) reasons for dismissal listed in section 98(2) of the Employment Rights Act 1996. The expression qualifications means any degree, diploma or other academic, technical or professional qualification relevant to the position that a dismissed employee held ( ibid. section 98(3)(b)). §   Although an employee can legitimately be dismissed for not having the qualifications needed to do his (or her) job, that is not necessarily an end to the matter. What an employment tribunal must decide is whether the dismissal was fair. Given the particular circumstances (including the size and administrative resources of his undertaking) did the employer act reasonably or unreasonably in treating the employee's lack of qualifications as a sufficient reason for dismissing him? That question, says section 98(4) of the 1996 Act, shall be determined 'in accordance with equity and the substantial merits of the case&
Read more

Pseudo-Employees | Part-Time Employees

-
Individuals carrying out work for an Organisation for payment are not necessarily employees of that Organisation. The distinction between the self-employed who carry out work for an Organisation under what is a 'contract for service', and employees who carry out work under a 'contract of service' is unclear. Employment legislation sometimes gives benefits and/or rights to 'workers' rather than 'employees'. All employees are workers but not all workers are employees. Determination Guidance as to whether a person is or is not self-employed and therefore not an employee, can be gained from the answers to questions such as: a. Does the person have managerial control over their own activities? b. Do they have investment control over their actions? c. Have they the right to hire and fire their own staff? d. Are they registered for VAT? e. Can the individual refuse to carry out work offered without sanction? If the answers are YES then almost certainly the pers
Read more