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June 1, 2022

Theft inside the Company Premises: Remedies of the Employer

For related topic regarding theft in the workplace you may also read: Stealing Co-Employee’s Personal Belongings: A Just Cause for Dismissal

Theft is a crime punishable by our laws in the Philippines. Specifically, Article 308 Revised Penal Code substantially provides that any person who shall take or steal with intent to gain the personal property of another without his or her consent and with no further use of violence, intimidation of persons or force upon things, shall be liable for the crime theft. Further, if the crime of theft shall be committed by and through the following means, the crime is considered as QUALIFIED THEFT:

  1. Committed by a domestic servant, or
  2. With grave abuse of confidence, or
  3. If the property stolen is motor vehicle, mail matter or large cattle or consists of coconuts taken from the premises of a plantation, fish taken from a fishpond or fishery or
  4. If property is taken on the occasion of fire, earthquake, typhoon, volcanic eruption, or any other calamity, vehicular accident or civil disturbance (Article 310 of the Revised Penal Code).

With all the foregoing, if the crime of theft was committed by an employee in the company premises, what are the possible remedies of the employer?

Initiation of a Criminal Complaint against the Employee

Since theft is a crime punishable by our laws, an employer may initiate a criminal complaint against the suspect employee. However, the employer must produce evidence which leads to establishment of probable cause or a reasonable belief that the suspected employee committed the crime charged against him. This is the rule in initiation of criminal cases.

Once the employer collected the pieces of evidence leading to the fact that the employee stole some properties of the company, these shall be appended to the criminal complaint and filed to the Office of the City or Provincial Prosecutor of the place where the crime of stealing was committed.

After the case is filed with the Office of the City/Provincial Prosecutor (OCP), the OCP will issue a subpoena to the suspected employee, requiring him or her to appear on a certain date and time to submit his or her Counter-Affidavit.  Thereafter, the Employer may file a Reply-Affidavit to controvert the new issues he or she raised. In the same vein, the suspected employee may file a Rejoinder-Affidavit. This process is known as Preliminary Investigation, a process to know whether or not there is probable cause that the suspected employee committed the crime charged against him or her.

Once there is a conclusion of the Preliminary Investigation conducted by the OCP, the OCP will issue a decision denying, if there is no probable cause found, or a decision finding probable cause which comes with it the issuance of warrant of arrest and information against the accused.

While the case is pending before the OCP or even before the initiation of the criminal complaint, the Employer may opt to place the suspected employee under Preventive Suspension. To note, preventive suspension may be legally imposed against an employee whose alleged violation is the subject of an investigation. The purpose of suspension is to prevent-harm or injury to the company as well as to fellow employees (Maula vs. XIMEX Delivery Express, Inc., G.R. No. 207838, January 25, 2017). The pertinent rules dealing with preventive suspension are found in Sections 8 and 9 of Rule XXIII, Book V of the Omnibus Rules Implementing the Labor Code.

As succinctly stated above, preventive suspension is justified where the employee’s continued employment poses a serious and imminent threat to the life or property of the employer or of the employee’s co-workers. Without this kind of threat, preventive suspension is not proper. Applying this to the case of a stealing employee, it can be said that suspected employee posed a danger on the properties or personal belongings of the officers or employees.

Termination from Employment

In the previous article (link to Stealing Co-Employee’s Personal Belongings: A Just Cause for Dismissal), we have discussed that, it has already been settled by numerous decisions of the Supreme Court that, theft involving company properties or stealing the properties of the company is considered as a form of serious misconduct under Article 297 (a) of the Labor Code of the Philippines (Philippine Long Distance Telephone Company v. National Labor Relations Commission, G.R. No. L-80609, August 23, 1988, 164 SCRA 671, 679-680, Reno Foods, Inc. vs. Nagkakaisang Lakas ng Manggagawa (NLM)-Katipunan 615 SCRA 240 , March 15, 2010).

The crime of theft may also fall under Article 297 (c) of the Labor Code of the Philippines or fraud or willful breach by the employee of the trust reposed in him by his employer or his duly authorized representative. This is essentially true especially when the suspected employee occupies a position where trust and confidence is reposed on him or her by his employer.

While theft is considered as one of the just causes for dismissal of an employee, the employer shall still comply with the procedural aspect of termination to make the dismissal valid.

Furthermore, employers shall be reminded that filing of a criminal case of Qualified Theft against the employee is not totally binding with the labor tribunals. In other words, whatever may be the result of the criminal case may not affect the results in a labor case.

In the procedure before the Labor Arbiters, the crime of qualified theft does not necessarily mean that there exists a valid ground for their termination from employment especially when the employer merely relied on the resolution of the prosecution.

Citing the 2015 case of Copy Central Digital Copy Solution vs. Domrique et al., (G.R. No. 193219), a criminal conviction is not necessary to find just cause for employment termination. Otherwise stated, an employee’s acquittal in a criminal case, especially one that is grounded on the existence of reasonable doubt, will not preclude a determination in a labor case that he is guilty of acts inimical to the employer’s interests. In the reverse, the finding of probable cause is not followed by automatic adoption of such finding by the labor tribunals. In other words, whichever way the public prosecutor disposes of a complaint, the finding does not bind the labor tribunal.

In the said case, the employer argued before the labor tribunal that since the prosecutor found probable cause for qualified theft and subsequently filed criminal information against the erring employee, the labor tribunal must follow the finding as a valid reason for their termination from employment. The Supreme Court was not convinced. The criminal case for qualified theft and the just cause for its dismissal are different.

Thus, in order to convince the labor tribunals that there is a valid cause for the dismissal of the employee, employers shall still prove the substantial aspect in a labor case, which is, the dismissal is due to serious misconduct and/or loss of trust and confidence and also, that there is proper observation of procedure in terminating the employee.


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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