Employee Discipline Policy

                                                  Employee Discipline Policy

Michael Cunningham

Employee Labor and Relations

Professor Swinerton

05 March 2015 

In a retail business, employee theft can become a big problem. When this occurs, it’s important that you handle it carefully as to not expose the company to litigation. It is imperative that the company’s policy clearly covers the topic of fraud and theft, as well as the repercussions. It is also very important that all employees are aware of the company policy. This is best accomplished through written policy statements.

When it comes to implementing a theft or fraud policy, it is important for the company to choose its words carefully. Using the word “theft” can become a serious legal issue which could   expose your company to potential lawsuits, a defamation claim or worse. It’s better to accuse the employee of “violating company policy” or of a “cash handling violation” than accusing him or her of “theft”.

Once you’ve investigated and confirmed that an employee has committed fraud or theft, you should first ensure there is solid evidence. Video is best, but eyewitnesses are also good. Gather facts and compile all documentation. Maintain a chain of custody to prove the evidence wasn’t tampered with because the investigative report may be important in the event of any legal action.

You may want to terminate the employee’s employment. If you do, make sure to follow company policy and check to see if there are other issues such as contracts, collective bargaining agreements, or union representatives that must also be addressed. You should notify the police. You will need a police report for insurance purposes.  Don’t deduct anything from the employee’s final paycheck as state restrictions vary from state to state. Lastly, maintain confidentially by not discussing the situation with other employees or outsiders.

Prevention of theft or fraud are just as important as responding when it happens. Having a policy in place let employees know that any dishonest acts come with serious consequences. Advise employees that if they know of another employee’s dishonesty and fail to report it, they can be subject to discipline as well.

                                                               References

Robinson, R. K., Franklin, G. M., & Wayland, R. (2005). The Regulatory Environment of Human Resourse Management. Boston, MA: Pearson Custom Publishing.