Employees can go to jail for defrauding employer
It is rare, but possible
Jan 15, 2013
By Stuart Rudner
Employers often feel as though employment law is the legal equivalenet of a one way street — it protects employees but offers no assistance to employers.
When I work with clients, I am occasionally asked whether they can legally pursue an employee that has cost them money, either deliberately or negligently. In the case of negligence, such a claim will be difficult. However, fraudulent and other intentional misconduct can, in the right circumstances, result in legal liability to the victim employer. Furthermore, theft, fraud and similar behaviour is criminal conduct and can result in imprisonment. While quite rare, it happened recently in Alberta.
Edmonton Journal reported
, an employee with a gambling addiction submitted forged invoices to her employer and fraudulently obtained about $200,000 for herself. She has been ordered to serve two years in jail and pay restitution to her former employer.
As discussed in previous posts, I do not recommend that employers take any action before they undertake a proper investigation. However, if the investigation reveals criminal conduct, then involving the police may be an option to consider.
Stuart Rudner is a leading HR Lawyer and a partner in the Labour & Employment Law Group of Miller Thomson LL
P, a national law firm. He provides clients with strategic advice regarding all aspects of the employment relationship, and represents them before courts, mediators and tribunals. He is author of
You’re Fired: Just Cause for Dismissal in Canada
, published by Carswell. He can be reached at
. You can also follow him on Twitter
join his Canadian HR Law Group on LinkedIn.
Stuart Rudner is a founding partner of Rudner MacDonald LLP in Toronto. Follow him on Twitter @CanadianHRLaw
. He can be reached at firstname.lastname@example.org