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Protect Your Business with Strong Theft Prevention Policies and Procedures

Whether you run a construction company or a bakery, employee theft costs you time and money.  While you can’t prevent all theft, there are things you can do to reduce the amount of employee theft your business suffers.

At Portuondo Law Firm, we offer assistance drafting theft prevention policies and procedures, as well as other critical documents designed for your business success.  Theft prevention policies and procedures assist your business by reducing the risk of loss and making your company’s position clear to employees.

Theft Prevention as Part of Your Onboarding Process

Business LawyerWhen hiring new employees, it is important to make your expectations clear from the start.  Use a written theft prevention policy, and have your employees sign the policy.  By executing the document, employees acknowledge they understand your expectations.  This may seem silly.  After all, who needs to be told they shouldn’t steal?  However, there can be gray areas.  For example, can an employee “borrow” construction equipment or tools at night or over the weekend, for personal use?  Is using company equipment for a side job allowed?  What about retail product damaged in the store – must it be thrown away?  Can an employee take it for themselves or sell it to another?Detailed theft prevention policies avoid situations where expectations and obligations are subject to interpretation.

Develop a System for Auditing and Reporting

Having a regular system in place, where inventory is reviewed and money transactions are audited, creates a quick feedback loop for employers.  Your audit should include the following:

  • Accounts receivable
  • Accounts payable
  • Expense reports
  • Payroll
  • Petty cash
  • Purchasing
  • Sales

With proper systems in place, you or your managers will notice missing inventory or short cash drawers sooner, avoiding further loss.  Additionally, these systems will put you in a better place to spot patterns between missing or damaged goods and a given employee.

Follow Through with Your Policy

If your policy indicates “zero tolerance,” then you must display zero tolerance when one of your employees is caught stealing from the business.  It is likely other employees know or suspect the theft is occurring.  If you fail to follow through, your employees will see that.  Regardless of how you respond, your employees will learn a great deal about your theft prevention policy if the time ever comes when you discover employee theft.  When crafting your employee theft policy, be sure to consider all the options.  If you plan on pursuing criminal charges for employee theft, make sure this is included in the policy.  A business lawyer can advise you on what is and isn’t enforceable and can help with document preparation.

Protect Your Business

Employee theft can range from a minor annoyance to something that could bankrupt a company.  Implementing clear, strong employee theft policies provides employers with some reassurances, and provides employees with clear guidance about expectations.  Contact Portuondo Law Firm today so we can discuss your essential documents, protecting your business and helping you grow.




The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send us any documents to review or confidential information until such time as an attorney-client relationship has been established.

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Marisa Portuondo

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