What legal action can be taken against an employee who steals company stocks and absconds without reporting sales?

In the Philippines, employee theft and embezzlement are serious offenses that can be addressed through various legal actions. The Revised Penal Code and other related laws provide mechanisms for employers to seek justice and recover losses.

Definition and Elements of Theft and Qualified Theft

Theft is defined under Article 308 of the Revised Penal Code as the act of taking personal property belonging to another without the latter’s consent, with intent to gain. For a case of theft to be established, the following elements must be present:

Taking of Personal Property: The offender must take personal property.
Ownership by Another: The property taken must belong to another person.
Intent to Gain: The taking must be with intent to gain.
Without Consent: The taking must be without the owner's consent.

Qualified Theft, under Article 310, is theft committed by a domestic servant, or with grave abuse of confidence, or when the property stolen is a motor vehicle, mail matter, or large cattle. When an employee, who is entrusted with the company’s stocks, misappropriates or sells them without authority and fails to remit the proceeds, it constitutes qualified theft.

Embezzlement and Estafa

Embezzlement, also known as Estafa under Article 315 of the Revised Penal Code, involves the fraudulent conversion of property by a person to whom it has been entrusted. The elements of estafa include:

Receipt of Money, Goods, or Other Personal Property: The offender receives the property.
Obligation to Deliver or Return: There is an obligation to deliver or return the property.
Misappropriation or Conversion: The offender misappropriates or converts the property to their own use.
Damage to Another: The act results in damage to the owner of the property.

Legal Remedies for Employers

Filing a Criminal Complaint for Qualified Theft or Estafa: Employers can file a criminal complaint with the police or the National Bureau of Investigation (NBI). The complaint should include evidence of the theft or embezzlement, such as inventory records, transaction documents, and witness statements.
Civil Action for Recovery of Property or Damages: Alongside criminal proceedings, employers can file a civil action to recover the value of the stolen property and seek damages. This can be done by filing a complaint in the appropriate Regional Trial Court.
Temporary Restraining Order and Preliminary Injunction: Employers may seek a temporary restraining order (TRO) or a preliminary injunction to prevent the employee from disposing of the misappropriated property or assets. This legal remedy can help preserve the status quo while the case is being adjudicated.
Administrative Remedies: Employers can also take administrative action against the erring employee, which may include termination of employment, reporting to relevant regulatory bodies, and seeking redress through labor tribunals for any breach of trust and confidence.

Steps to Take

Gather Evidence: Collect all pertinent documents and evidence, such as transaction records, inventory logs, and communications that demonstrate the employee’s actions.
Consult a Lawyer: Seek legal advice to understand the specific legal options and strategies based on the details of the case.
File a Complaint: Prepare and file a complaint with the local police, NBI, or the appropriate court, providing all gathered evidence.
Cooperate with Authorities: Assist in the investigation and prosecution by cooperating fully with law enforcement agencies.

Conclusion

Addressing employee theft and embezzlement in the Philippines requires a thorough understanding of the legal provisions under the Revised Penal Code. Employers should act promptly and seek legal assistance to ensure that justice is served and that they recover their losses effectively. By pursuing both criminal and civil remedies, employers can hold the offending employee accountable and prevent similar incidents in the future.