Employee theft is more common than you might think. Studies reveal that nearly 75% of employees have admitted to stealing from their workplace at least once.
Whether it’s taking cash, inventory, or sensitive company information, employee theft has serious consequences. And in Alberta, the law takes such offences very seriously.
For employees, even a single act of theft could lead to criminal charges, hefty fines, and even imprisonment. For employers, the impact goes beyond financial losses. It can disrupt operations, damage trust within teams, and tarnish a business’s reputation.
This blog will explore everything you need to know about employee theft in Alberta. We’ll cover how the law defines theft and fraud, the penalties involved, and what happens when trust is broken in the workplace.
What Is Employee Theft?
Employee theft refers to the unlawful taking or misappropriation of a company’s property by an employee. This can include stealing money, products, or company information, as well as misusing resources. In legal terms, it can fall under fraud and theft depending on the nature of the act.
Types of Employee Theft
- Theft of Cash: Includes embezzlement, unauthorized use of petty cash, or skimming funds from transactions.
- Stealing Physical Assets: Employees might steal inventory, office supplies, or equipment.
- Time Theft: Falsifying work hours or using company time for personal purposes.
- Data Theft: Unauthorized access or sharing of confidential company information.
- Fraudulent Activities: Altering records, creating fake invoices, or other deceptive practices.
Employee theft not only leads to financial losses for businesses but can also harm their reputation and morale among other employees. For individuals, being charged with theft can have devastating personal consequences, including damage to future career prospects.
Legal Consequences Of Employee Theft In Alberta
Applicable Laws
In Alberta, cases of employee theft are governed by the Criminal Code of Canada. The severity of penalties depends on the value of the stolen goods or funds and whether the theft involved aggravating factors, such as a breach of trust.
Under the Criminal Code, employee theft is often charged as either fraud or theft, with specific penalties depending on the value of the misappropriated assets:
- Theft Under $5,000: Considered a less severe offence but still punishable by up to 2 years imprisonment. Employees may also face probation, restitution orders, and fines.
- Theft Over $5,000: Classified as an indictable offence, carrying harsher penalties, including up to 10 years in prison.
- Fraud Under $5,000: Punishable by fines, probation, and imprisonment of up to 2 years.
- Fraud Over $5,000: Can lead to imprisonment of up to 14 years, especially in cases involving a significant breach of trust.
If the theft involves a breach of trust (e.g., a manager or accountant stealing funds), courts may impose harsher sentences. Trust is a critical component in employment relationships, and breaching it aggravates the severity of the offence.
Factors That Affect Sentencing
Several factors influence the penalties for employee theft in Alberta:
- Value of Stolen Items: Higher-value thefts typically result in more severe penalties.
- Role of the Employee: Employees in positions of trust, like managers or accountants, are more likely to face harsh sentences.
- First-Time vs. Repeat Offenders: First-time offenders may receive lighter sentences or alternative resolutions, while repeat offenders face stricter penalties.
- Restitution Efforts: Making efforts to repay stolen amounts or return stolen goods may lead to reduced penalties.
- Intent and Circumstances: Courts will consider whether the theft was premeditated or occurred under duress.
Defending Against Employee Theft Charges
Facing accusations of fraud and theft can be overwhelming, but with the right legal strategy, defendants can protect their rights and minimize the impact of charges.
Common Defences
- Lack of Intent: If the prosecution cannot prove intent to commit theft or fraud, the charges may be dismissed.
- Mistaken Identity: In cases where multiple employees had access to the stolen property, mistaken identity can be a defence.
- Duress: If the theft occurred under coercion or threats, this defence may apply.
- Insufficient Evidence: Weak or circumstantial evidence may lead to acquittal.
Navigating employee theft charges requires legal expertise. An experienced criminal lawyer can evaluate the evidence, negotiate with prosecutors, and build a strong defence. For those facing significant penalties, hiring a lawyer can make a critical difference in the outcome of the case.
The Personal And Professional Impact Of Employee Theft
Consequences For Employees
A conviction for employee theft can result in more than just legal penalties. It may lead to:
- Difficulty finding new employment due to a criminal record.
- Loss of professional licenses for regulated professions.
- Damage to personal reputation and relationships.
Consequences For Employers
For employers, employee theft can cause:
- Financial losses and increased operational costs.
- Reduced employee morale and trust within the team.
- Long-term damage to the business’s reputation.
Why Slaferek Law Is Your Trusted Partner In Edmonton
If you’re facing fraud or theft charges in Alberta, Slaferek Law is here to help. With nearly two decades of experience, Darin Slaferek provides compassionate and strategic legal representation tailored to your unique circumstances.
Based in Edmonton, Slaferek Law specializes in criminal defence, helping clients navigate complex legal challenges with confidence. Contact us today to discuss your case and secure expert legal guidance.
