What should I do if an employee is stealing from my business?

Start with evidence (not emotion)

You don’t need CCTV to begin. Build a clear, factual picture:

• Compare stock records against sales and purchase orders

• Check till reports for cash discrepancies/voids/overrides

• Save relevant emails, messages and system logs

• Collect short, signed witness statements (who/what/when/where)

• Log specific incidents with dates, times and values

This isn’t about catching someone red-handed. It’s about creating an auditable trail before you act.

Run a fair investigation

Emotions run high. Process protects you.

• Don’t confront publicly or on the shop floor

• Consider suspension on full pay if allegations are serious and/or there’s a risk to evidence or operations

• Invite the employee to an investigation meeting; outline the concern and share what you can

• Follow your disciplinary policy and the ACAS Code of Practice step by step

• Keep objective notes and preserve all documents

A fair, documented process strengthens decisions and reduces tribunal risk.

When to involve the police

Reporting can be appropriate, but it doesn’t replace your HR process.

• The value is substantial and/or ongoing

• There’s clear evidence of deliberate theft (not an error)

• There’s a wider criminal risk (eg, fraud ring, data theft)

If you do report, continue your internal investigation in parallel and keep the employee informed where appropriate.

Costly mistakes to avoid

• Confronting in anger or making accusations without evidence

• Letting gossip spread. Prevent this by briefing managers and keeping confidentiality tight

• Dismissing without investigation or skipping steps

• Ignoring the issue “to keep the peace” (it signals tolerance and invites repeat problems)

Each of these undermines your case and can hand someone an unfair dismissal claim.

Protect your business (now and next time)

Your goals: be consistent, evidence-based, fair and fully documented.

• Use a simple evidence log and chain of custody for physical items

• Apply the same steps for everyone — no favourites, no shortcuts

• Time-stamp and store all notes, letters and emails

• Review policies: theft, investigations, disciplinary, CCTV/data, searches

• Tighten controls: till permissions, stock counts, dual-sign-off for refunds/credits

Skip these and you risk turning one theft into a costly claim.

Let’s solve this

Theft investigations are tricky. One wrong move can turn a serious issue into an expensive mess.

Book a confidential HR consultation. We’ll:

• Review your situation and evidence

• Map the right investigation and disciplinary steps

• Protect your position and reduce tribunal risk

Note: This is general guidance for UK SMEs and not legal advice. For complex cases (eg safeguarding, violence, large-scale fraud), get tailored support.