Confronting theft from an employer charges is one of the most alarming situations an employee can encounter in Ontario. Not only do you risk losing your job and livelihood, but accusations of stealing from a business involve harsh criminal punishments, the possibility of jail, and a permanent criminal record that will undermine your future.
Canadian criminal law does not view theft in the workplace as an ordinary offence against property. Due to the trust placed in employees, the Courts treat employee theft charges very seriously. It is vital to understand the manner in which the Canadian Criminal Code deals with these charges, the possible sentence involved, and the available legal defences.
What Constitutes Theft from an Employer Under Canadian Law?
Theft in Canada is outlined in Section 334 of the Criminal Code. An employee commits theft from an employer by intentionally and without authority taking, misapplying, or fraudulently converting to his own use or purpose property, money, or valuable security of the employer.
Workplace theft can manifest in various ways, including:
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Direct Cash Skimming: Seizing actual cash registers, tills, or company safes.
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Inventory/Asset Theft: Intentionally stealing products, raw supplies, tools, or physical equipment belonging to the business.
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Payroll and Expense Fraud: Inflating hours worked, falsifying records of expenses, or claiming business expenses not authorized.
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Invoicing and Account manipulations: Redirecting payments from the vendor to a personal account; Forging or altering accounting entries for the vendor; creating a fake vendor account.
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Abuse of company credit cards by employees: Making unapproved personal transactions on company-issued credit cards.
Theft Under 5K in comparison to Theft Over 5K
The seriousness of the charge if found guilty depends on the value of the money involved:
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Theft Under $5,000: Hybrid Offence. Summary conviction upon conviction; penalty: maximum fine or up to 2 years less a day of imprisonment. Indictable offence upon conviction; penalty: more severe.
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Theft Over $5,000: Considered an indictable offence. Under 5,000 is dealt with summarily. The maximum penalty is up to 10 years’ imprisonment.
Why Courts Treat Employee Theft Charges More Severely: Breach of Trust
One of the principal differences between a theft committed by an employee and one perpetrated by a stranger is the legal requirement of Breach of Trust. In Canada, this requirement is set out in the Criminal Code at sec. 718.2, where a breach of trust is specified as an aggravating factor for sentencing purposes.
The granting of access to inventory, financial ledgers, corporate credit accounts and physical premises by an employer gives rise to a fiduciary duty and professional trust. When the Crown demonstrates that an employee abused this trust, courts tend to pass conditional or actual jail sentences rather than impose fines or probation, even in first-time, low-level cases. Magistrates become heavily focused on punishment and denunciation.
Consequences of an Employee Theft Conviction
The far-reaching consequences of a theft conviction include:
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Imprisonment: From probation or Conditional Sentence Orders (CSO’s) to extensive federal/provincial imprisonment.
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Restitution Orders: Compulsory court orders that require total repayment to the employer.
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Conviction Record: An official record of conviction that shows up on most background checks and can make it difficult to get employment in the financial, retail, or management fields.
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Revocation of Professional Licenses: Professionally regulated individuals (for example, accountants, lawyers, nurses, realtors or financial advisers) will have their professional licenses suspended immediately or revoked for life.
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Immigration and Travel Limitations: A background check may result in travel limitations (especially abroad) and may compromise the ability to become a legal resident or obtain permanent citizenship.
Effective Legal Defences Against Theft Charges
Once you are formally charged this does not necessarily lead to conviction. Cases of employer theft usually involve complicated accounts, internal scrutiny, and circumstantial evidence, which a good lawyer will be able to successfully defend. Your experienced legal adviser will scrutinise the prosecution’s case for the following lines of defence:
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No Mens Rea (Intent): Theft must establish intent. If you genuinely believed you had authorization, were following clear instructions from management, or were actually making an honest clerical error, the Crown would not be able to establish intent beyond a reasonable doubt.
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Confusing access: Many employees in a busy work environment have access to cash registers/safes/software accounts. Showing that other people could have had equal access would raise doubt.
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Faulty Financial or Audit Trail: Internal corporate investigations are done quickly or without adequate chain-of-custody procedures. Inaccurate accounting software or bookkeeping, or lost records, can destroy the Crown’s case.
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Charter Rights Violations: Unlawful searches of the employer’s premises, your locker, or your personal cell phone or car by management or police without proper authority or without a search warrant may have violated your rights under the Canadian Charter of Rights and Freedoms, excluding such evidence from proceedings.
Critical Steps to Take If Accused or Charged
If your supervisor, employee relations, or any police or law enforcement officer claims theft at work against you, you want to follow these initial steps:
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Use your right to remain silent if you are compelled: Do not try to discuss, negotiate, or sign written statements with your employer or HR department. Prepared statements are often used against you in a court of law.
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Never Talk to the Police: If your behavior is noticed and police ask you questions, always defer and politely inform them that you would like to discuss matters with your attorney before answering any questions.
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Get a Qualified Attorney as Soon as Possible: Having a professional attorney working on your case right from the start will protect your constitutional rights, gather evidence, and set in motion the best defence strategies.
Protect Your Reputation and Freedom with Sukhvir Singh Law
If you have been accused of an ambitious property or corporate crime, you need an experienced lawyer with a strong, defensive approach. To successfully defend yourself against this sort of charge, you will need high-quality legal advocacy.
Having criminal charges in court? Experienced Barrie Criminal Lawyers will fight to protect your rights at each stage of the justice process.
Your allegations should not destroy your reputation, your finances, and your future. Call Sukhvir Singh Law for a FREE, no-obligation consultation. You can rest assured that we will discuss your case safely and in confidence to formulate the best, most effective defence.
