As an expert HR consultant in Dorset, I'll guide you through handling suspected employee theft, safeguarding your business, and staying compliant with UK employment law.

It’s an uncomfortable thought no business owner wants to face: suspected employee theft. Whether it’s missing stock, cash discrepancies, or even the misuse of company time, the feeling of distrust can be deeply unsettling.

It’s not just about the tangible loss; it erodes the foundation of trust within your team and can significantly impact your profits and reputation.

As an independent HR consultant, offering HR consultancy services in Dorset, I often see business owners grappling with these situations. The temptation might be to react quickly or ignore the problem, but a misstep here can lead to even bigger headaches – think costly unfair dismissal claims and tribunal risks.

The good news? You can handle this calmly, fairly, and in a way that protects your business and your legal standing.

 

The hidden costs of internal theft

 

Employee theft is more than just a financial drain. It's a silent threat that can undermine your entire operation:

 

  • Erodes trust: When trust breaks down, it affects team morale and productivity

  • Harms profit: Direct losses from missing items or cash eat into your bottom line

  • Damages reputation: If not handled well, it can impact your business's standing and culture

  • Legal risks: An unfair response can quickly escalate into an expensive legal battle


 

Start with the evidence you do have

 

Before you do anything else, focus on gathering the facts. This isn't about 'catching someone red-handed' but building a clear, objective picture. Here’s what you need to do:

 

  • Check your records: Compare stock records against sales and purchase data. Look for discrepancies in till reports or financial statements

  • Collect statements: Gather witness statements, save relevant emails, or messages. Document specific incidents with dates, times, and who was present

  • Document everything: Keep detailed, factual notes of all observations and information


 

How to handle the investigation fairly

 

This is where many businesses go wrong, often unintentionally. Remember, it’s about doing the right thing and following a fair process:

 

  • Keep it confidential: Do not confront the employee publicly or discuss allegations in front of others. Gossip can quickly poison your workplace

  • Consider suspension: If the allegations are serious, consider suspending the employee on full pay while you investigate. This protects your business and prevents any further issues, without prejudging the outcome

  • Formal meetings: Invite the employee to a formal investigation meeting, explaining the allegations and allowing them to respond. They have a right to be accompanied

  • Follow the ACAS Code: Adhere to your disciplinary policy and the ACAS Code of Practice step by step. This is crucial for reducing the risk of an unfair dismissal claim

  • Maintain objective notes: Keep detailed, objective notes of all meetings and interactions


 

When to involve the police

 

Reporting to the police is a serious step. Consider it where there is clear evidence of deliberate theft, a substantial value involved, or an ongoing risk to your business. However, police involvement doesn't replace your duty to follow a fair internal process. Coordinate timing so a criminal report doesn't undermine your workplace investigation.

 

Mistakes to avoid at all costs

 

Even with the best intentions, it's easy to make missteps when you're under pressure. Avoid these common pitfalls:

 

  • Angry confrontations: Never confront an employee in anger

  • Ignoring the issue: This sends the wrong signal to your team and can allow problems to fester

  • Skipping steps: Dismissing an employee without a proper investigation or skipping procedural steps is a fast track to a tribunal claim


 

Protecting your business proactively

 

Prevention is always better than cure. Here’s how you can reduce the likelihood of future issues and ensure you’re prepared:

 

  • Review your policies: Update your disciplinary, conduct, and theft policies to be clear and robust

  • Train your managers: Equip your managers with the skills for investigations, note-taking, and understanding ACAS requirements

  • Implement controls: Strengthen basic controls like cash handling procedures, regular stock counts, and access permissions

  • Create resources: Put a simple investigation checklist and letter templates in place


 

You don’t have to do it alone

 

Dealing with suspected employee theft is one of the toughest challenges a business owner can face. It's emotionally draining and fraught with legal complexities. This doesn’t have to become a legal issue if handled correctly.

As an independent HR consultant, I'm here to be that calm, pragmatic voice in your corner. I can confidentially review your situation, map out the next steps, provide legally compliant templates, and guide your managers through investigation and disciplinary meetings.

My goal is to ensure your process follows the ACAS Code, reducing unfair dismissal risks and helping you update policies to prevent future issues.

Ready to explore how you can manage these challenging situations with confidence and protect your business? Let's have a confidential chat about your concerns and how an outsourced HR consultant in Dorset can support you.