UK Update: Combating the rise of workplace theft

The ongoing cost-of-living crisis has created many issues for employers and employees alike. New data has revealed that there has been another unanticipated consequence of the crisis; the rise in employee theft.

Recently, the insurer Zurich, through a Freedom of Information request, uncovered that there has been a 19% increase in the number of staff caught stealing from their employer since 2021 in England and Wales. The most common instances of theft in the workplace relate to the theft of office equipment or items such as toilet roll. Accordingly, commentators are linking the increase in workplace theft to the pressures, such as struggling to afford essential goods, that have been caused by the cost-of-living crisis. In addition to the rise in small-scale theft, there has also been an increase in more serious crimes such as intellectual property theft or the embezzlement of company funds.

As theft in the workplace often relates to menial items, it can go undetected for years but the ongoing cost can add up, especially when employers are under pressure to manage budgets. The financial penalties of theft are not the only repercussions to employers . Employee morale can be impacted if it is perceived that theft is common and investigations of theft can be time consuming.

With little hope that the cost of living crisis is going to ease up any time soon (and is reportedly going to continue to the end of 2024), employers may want to consider ways to manage the risk.

One off payment

In order to alleviate some of the financial pressures caused by the crisis, many employers have chosen to provide a one-off cost of living payment to their employees. It is an approach that has largely been welcomed by employees and can help with staff retention, particularly in sectors where high turnover due to salary levels exist.

Reviewing Polices and Procedures

In the wake of the rise in workplace theft, it is the perfect opportunity for employers to consider whether their property is vulnerable and to review policies and procedures for dealing with theft, including their disciplinary policies and procedures. Disciplinary policies should set out what is expected from employees and send a clear message that theft will not be tolerated and that any incidents will be investigated thoroughly. In the case of more serious thefts, it should be emphasised that the employer will not hesitate to report the crime to the police.

Disciplinary action

If the situation arises where disciplinary action must be taken against an employee, it is important to act consistently from case to case. It will be important that a fair disciplinary process is followed, especially in cases where it is deemed necessary to impose a disciplinary sanction up to, and including, dismissal.

By Burness Paull LLP, Scotland, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact ukscotland@transatlanticlaw.com

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