Query: What legal actions can be taken against an employee who steals from their company in the Philippines?

Understanding Embezzlement and Theft

Embezzlement and theft in the workplace are serious offenses in the Philippines, carrying significant legal consequences. Embezzlement involves an employee, who is in a position of trust, unlawfully taking or misappropriating funds or property belonging to their employer. Theft, on the other hand, is the unlawful taking of property without the consent of the owner, with the intent to permanently deprive the owner of its use and possession.

Legal Basis

Under Philippine law, particularly the Revised Penal Code, both embezzlement and theft are criminal offenses. The specific articles that address these crimes include:

Qualified Theft (Article 310): This occurs when an employee steals from their employer. It is considered a qualified form of theft because the perpetrator is in a position of trust.
Estafa (Article 315): Also known as swindling, estafa involves deceit or fraudulent acts to misappropriate property or money.

Criminal Charges and Penalties

When an employee commits embezzlement or theft, the employer can file criminal charges. The penalties for these offenses vary depending on the amount involved and the specific circumstances:

Qualified Theft: The penalties for qualified theft are more severe than ordinary theft. The punishment can range from prision correccional (imprisonment for 6 months and 1 day to 6 years) to reclusion perpetua (imprisonment for 20 years and 1 day to 40 years) if the value of the property exceeds P22,000, following the application of the Indeterminate Sentence Law.
Estafa: Penalties for estafa depend on the value of the misappropriated property. If the amount exceeds P12,000 but does not exceed P22,000, the penalty is prision correccional in its maximum period to prision mayor in its minimum period. For amounts exceeding P22,000, the penalty is prision mayor in its maximum period to reclusion temporal (imprisonment for 12 years and 1 day to 20 years).

Filing a Complaint

To initiate legal action, the employer must file a complaint with the appropriate authorities. This involves:

Gathering Evidence: Documenting all instances of theft or embezzlement, including transaction records, witness testimonies, and any other relevant proof.
Filing a Police Report: Reporting the crime to the police, who will then conduct an investigation.
Filing a Case: The employer can file a criminal case with the Prosecutor’s Office, which will evaluate the evidence and determine if there is probable cause to file charges in court.

Civil Liability

In addition to criminal charges, the employee may also face civil liability. The employer can file a civil case to recover the stolen amount or property. This can be done alongside or separately from the criminal case.

Preventive Measures

To mitigate the risk of embezzlement and theft, employers can implement several measures:

Internal Controls: Establishing strict financial controls and regular audits to detect and prevent fraudulent activities.
Employee Screening: Conducting thorough background checks on potential employees to ensure they have no history of dishonest behavior.
Clear Policies: Developing clear company policies regarding the handling of funds and property, and ensuring employees are aware of the consequences of theft and embezzlement.

Conclusion

Embezzlement and theft in the workplace are grave offenses with severe legal consequences under Philippine law. Employers have the right to pursue criminal and civil actions against employees who commit such acts. Implementing robust preventive measures can help protect businesses from these risks.