Theft and Fraudulent Acts in Employment

Query: An employee is accused of stealing company stocks and selling them for personal gain without reporting the profits or returning to the company. What legal case can be filed?

In the Philippines, theft and fraudulent acts committed by employees against their employers can lead to serious legal consequences. The legal remedies available in such cases are governed by various provisions under the Revised Penal Code and other relevant laws.

Theft (Article 308, Revised Penal Code)

Theft is defined under Article 308 of the Revised Penal Code. It involves the unlawful taking of personal property belonging to another with intent to gain, without the owner's consent. In the case of an employee who takes company stocks without permission and sells them for personal profit, the following elements of theft are present:

1. Taking of Personal Property: The employee takes stocks that belong to the employer.
2. Lack of Consent: The employer did not authorize the taking of the stocks.
3. Intent to Gain: The employee sells the stocks and keeps the proceeds, indicating intent to gain.
4. Unlawful Taking: The act of taking and selling the stocks is done without any legal right or justification.

If found guilty, the employee can face penalties including imprisonment. The severity of the penalty depends on the value of the property taken.

Qualified Theft (Article 310, Revised Penal Code)

When the crime of theft is committed with grave abuse of confidence, it is classified as qualified theft under Article 310 of the Revised Penal Code. This applies to employees who steal from their employers, as the act involves a breach of the trust reposed in them by virtue of their employment. Qualified theft is punished more severely than simple theft.

Estafa (Article 315, Revised Penal Code)

Estafa, or swindling, under Article 315 of the Revised Penal Code, involves defrauding another person by abuse of confidence or by means of deceit. An employee who takes stocks with the intent to sell them and does so without reporting the proceeds or returning them to the company may be charged with estafa if it can be shown that:

1. There is deceit or abuse of confidence: The employee was trusted with access to the stocks and misused that trust.
2. Damage or prejudice is caused: The employer suffers a loss due to the unauthorized sale of the stocks and the unreported profits.

Breach of Contract and Employment Obligations

In addition to criminal liability, the employee may also face civil liabilities and administrative sanctions. Breach of employment contract and violation of company policies can result in the employee being terminated for cause. The employer may also seek restitution for any financial losses incurred due to the employee's actions.

Legal Actions and Remedies

To address such cases, the employer can:

1. File a Criminal Complaint: The employer can file a complaint for theft, qualified theft, or estafa with the appropriate law enforcement authorities.
2. Pursue Civil Action: The employer can seek civil remedies to recover the value of the stolen stocks and any other damages incurred.
3. Administrative Action: Terminate the employee for cause and pursue any applicable internal disciplinary actions.

Conclusion

Employers in the Philippines have several legal avenues to pursue when dealing with employees who commit theft or fraud. By filing the appropriate criminal charges and seeking civil remedies, employers can address the misconduct and recover their losses. It is essential to act swiftly and gather all necessary evidence to support the case.