Simplified Question: What legal consequences can an employee face for using company funds for personal purposes, even if they intend to repay the money?

In the Philippines, the unauthorized use of company funds by an employee, even with the intent to repay, can result in serious legal consequences. This act is often classified under the crime of estafa or qualified theft, depending on the specific circumstances of the case.

Estafa
Estafa, as defined under Article 315 of the Revised Penal Code, involves defrauding another party through deceit, false pretenses, or abuse of confidence. If an employee uses company funds without proper authorization, particularly by exploiting a position of trust, this can be considered estafa by means of misappropriation or conversion. The crucial element here is the abuse of confidence, where the employee was entrusted with the company’s money but used it for personal purposes.

Qualified Theft
On the other hand, qualified theft occurs when an employee, who is entrusted with property, steals that property from the employer. Unlike ordinary theft, qualified theft involves a breach of trust and is penalized more severely under Article 310 of the Revised Penal Code. The key factor that distinguishes qualified theft from estafa is the act of taking the property without the owner's consent, typically in a covert manner.

Penalties
Both estafa and qualified theft carry heavy penalties under Philippine law. The penalties for estafa vary depending on the amount involved, but it can range from six months to life imprisonment if the sum is substantial. Qualified theft is penalized more severely, with penalties also varying based on the value of the property stolen, but generally involving longer imprisonment terms than estafa.

Employer’s Recourse
In addition to criminal charges, the employer has the right to terminate the employment of the individual involved for serious misconduct or breach of trust. The employer may also file a civil case to recover the misappropriated funds.

Good Faith and Restitution
The intent to repay the money may mitigate the penalties but does not absolve the individual from criminal liability. Philippine courts have held that restitution or returning the money after being caught does not erase the crime of estafa or qualified theft. The act of using company funds without authorization, even with the intent to return it, still constitutes a violation of trust and can be prosecuted.

Conclusion
Employees must exercise extreme caution when handling company funds. Unauthorized use, regardless of intention, can lead to severe legal consequences, including imprisonment and civil liabilities. Employers are encouraged to establish clear guidelines and checks to prevent such incidents and protect their assets.