Employee theft happens everywhere and every time. It is defined as the unauthorized accessing or use of an employer’s property for personal gain. Also, it is tricky and hard to catch the culprit because no business owner ever wants to contemplate that their employees are stealing from them. It causes the corporation major financial losses as well as tarnish their reputation among the customers.
According to the new UAE Labour Law 2022, theft is punishable. Misdemeanor results in five to seven years imprisonment or fine. Hence, it emphasizes holding such crimes accountable and acts as a guideline for companies to structure investigation steps. It addresses the importance of justice and builds convenience.
Let’s read more about employee theft and how to handle it:
Different Types Of Employee Theft
Understanding the many forms of theft is the first step in avoiding it. Employees may become more unscrupulous and skim from accounts or invalidate transactions to disguise their tracks if they steal money or items. Employees can also “steal time” by changing their clock in and clock out times.
Employee theft may cost businesses a lot of money. With a high percentage of employees confessing to stealing from their workplace at least once, it’s critical to keep an eye out for theft. But what types of employee theft exist? Knowing what to look for might help you prevent workplace theft:
Theft Of Inventory
Employees can account for up to 50 percent of inventory loss. Employees who work for a firm that sells tangible things may steal inventory for personal use or to resale. On-site cameras can assist in reducing possible theft or, at the very least, capture criminals in the act. Another approach is to keep more valuable inventory goods securely locked up, and only management has access to them.
It is a popular type of fraud that happens when an employee charges a customer the entire amount but keeps a small portion of the total for themselves. It may be as sophisticated as using coupon codes on a customer’s purchase while charging them a total price and keeping the difference. In cases when your staff physically accepts cash in a fast-paced atmosphere, such as a bar, it is a simple fraud to pull. It might lead to tell-tale cash register imbalances.
Theft Of Services
Theft of service may happen in any organization, from an accountancy firm to a bakery to an auto shop. For example, an administrative assistant in a hair salon may request that a stylist trim her hair for free.
While you may give discounts on your services to employees, some employees will still misuse corporate services and scam your firm. Encourage suggestions on your internal reporting hotline to avoid this.
One of the most harmful sorts of data is data theft. It can jeopardize client information as well as business trade secrets. Employee personal information, credit card numbers, customer contact lists, and other information can all be stolen. Company assets may be jeopardized.
Furthermore, the consequences of losing valuable consumer and staff data might extend well beyond the crime itself. Customers and staff alike would be hesitant to entrust their data to your firm again.
Every company has payroll duties and people that are in charge of them. It means that every organization is vulnerable to payroll theft. Employees in charge of financial chores can steal from their companies by either cashing coworkers’ checks or making counterfeit checks and cashing them.
How To Prevent Employee Theft
Employers may take certain precautions to avoid employee theft. Some of these actions are safety precautions. Others are ways to discourage stealing by making it unappealing.
Strict hiring strategies can prevent thieves from infiltrating your workforce. Make sure there is no criminal history by verifying their criminal background. Speaking with previous employees and references can also help in weeding them out.
Implement Promising Security Measures
Implementing inventory security and tracking measures will help in identifying the culprit immediately. Cameras and computer monitoring will prevent employees from committing dishonest actions. Moreover, regular financial audits can also assist in identifying cash imbalances.
Make Theft Undesirable
Other strategies to make stealing unappealing are to make salaries highly attractive and to ensure that employees’ demands are addressed. Satisfied employees are less prone to steal. Moreover, offering complimentary or reduced-price items to staff may aid in preventing inventory theft.
To conclude, employee theft is inevitable and therefore, you must be well-prepared. You can hire the best law firm in Dubai to help you in your investigation and make sound decisions in the light of labour law.