Employee theft in Alberta is more common than you think
By Vince Semenuk
When people consider theft from businesses they may only think about shoplifters. However, employee theft may be more common, although it is much harder to detect and put a value on.
According to the Human Resources Director magazine, 75 per cent of Canadian employees admit to stealing at least once from their employer.
A media report states that on average, employees steal about $2,500 in cash or goods from their employer before they are caught, but not all at once.
“It's usually accumulated over a longer period through numerous small thefts,” states an advisor with the Retail Council of Canada in the article. “Every year, employee theft costs Canadian businesses about $1.4 billion.”
If you have been charged in relation to an alleged theft from an employer, you need legal advice because the penalties can be harsh. You will likely be fired and you could face financial penalties and incarceration.
Forms of employee theft
There are various ways workers can engage in employee theft, depending on the position they hold and how the company is structured. They include:
- stealing items without paying for them;
- taking cash, gift cards, coupons, promotional items or other instruments of value;
- altering or inaccurately recording financial statements;
- paying for something at a discounted rate that was not authorized; or
- fraudulently taking and returning items for cash refunds or exchanges.
There are various charges a person can face if they are accused of stealing from an employer. They include:
Unlike shoplifting, where the accused is caught and charged while leaving the store, it often takes months or even sometimes years to uncover employee theft. It may go unnoticed or be attributed to shoplifting or record-keeping errors.
Penalties can vary
The penalty for employee theft depends on the charge you are convicted of and whether it is treated as an indictable offence or a summary conviction. Because employee theft involves a betrayal of trust with the employer, Crown attorneys in serious cases will elect to treat the charge as an indictable offence since that carries a harsher penalty.
When it comes to sentencing, other aggravating factors include:
- the amount that was stolen;
- the number of times the theft or fraud occurred; and
- if you had a criminal police record; and
- your personal circumstances that may have contributed to the theft.
Here are the penalty ranges for employee theft offences.
Theft under and over $5,000: If the offence is treated as a summary conviction offence the maximum penalty is two years less one day imprisonment, a $5,000 fine or both. If the value of the theft is more than $5,000, the maximum penalty is 10 years in prison where the crown proceeds by way of indictment.
Fraud under and over $5,000: For fraud under $5,000, the maximum sentence is two years in jail for indictable offences. If the offence is treated as a summary conviction, the maximum penalty is two years less a day in custody, a $5,000 fine or both. If the value of the fraud is more than $5,000, the maximum penalty is 14 years in prison for indictable offences and a jail term of two years less one day, a $5,000 fine or both if the charge is treated as a summary conviction.
Possession of stolen property: If the value of the stolen material is under $5,000, the maximum sentence is two years for indictable offences. If the offence is treated as a summary conviction the maximum penalty is 2 years less one day in custody, a $5,000 fine or both. If the value of the fraud is more than $5,000, the maximum penalty is 10 years in prison for indictable offences and two years less one day in jail, a $5,000 fine or both if the charge is treated as a summary conviction.
Organized retail theft
Organized retail crime is when two or more people conspire to commit a retail crime where they are stealing large volumes of product with the intent to resell it illegally. That is done by putting the items for sale online or directly selling them to consumers through flea markets or from the back of cars.
A news article titled Organized retail crime in Calgary on the rise notes that “organized retail crime has become a multi-million dollar industry in Calgary with a huge impact on consumers and local business owners.”
“Calgary, just by our economic strengths, is a draw for the criminal element,” a Calgary police officer states. “We have lots of high-end stores, we’re very busy, we’ve got a lot of retailers that employ part-time and unseasoned staff just because of the fact it’s hard to find employment, we are a soft target. And it becomes known.”
The officer added the purpose of organized retail theft is to “generate revenue to put back into more illegal activities or to fund a drug habit.”
Call us for assistance
If you or a family member are facing charges related to employee theft it is wise to seek the guidance of a criminal lawyer. The team at Dunn & Associates understands the value of protecting clients and serving the public. We are experienced in defending people against an array of criminal charges and we will ensure that your constitutional and legal rights are protected at every step. Contact us for a free consultation.