Theft of Company Property – Notice to Explain

Theft of Company Property – Notice to Explain

Theft of company property may be ground for dismissal.

Commission of theft by employees may cause not just his dismissal from service but also a live threat for criminal prosecution. The Revised Penal Code generally defines theft as an act committed by any person who, with intent to gain but without violence against or intimidation of persons nor force upon things, shall take personal property of another without the latter’s consent (Art. 308, The Revised Penal Code).

Conviction in a criminal case is not necessary for dismissal on the ground of theft. If an employee steals company property, the employer may file criminal case in addition to dismissal from service.

Now, is conviction in criminal case necessary for dismissal on the ground of theft? No. In one case, the city prosecutor dismissed the complaint for theft against an employee due to insufficiency of evidence. But the administrative case for his dismissal went on. The employee cannot claim that there was no valid cause for her termination on the ground of theft because there was no probable cause. The conclusion that there was a valid ground for dismissal was supported by substantial evidence consisting of affidavits of NBI’s witnesses and the company’s own investigative findings.

The post below is based on the book Human Resource Forms, Notices and Contracts Volume 2 (pp. 127-130).

Form No. 73 Notice to Explain (First Notice) – Theft of company computer

To : Name of Employee

From : Human Resources Manager

Subject : Theft of company computer

Date : (Date of issuance of Notice) _______________

The incident which occurred in the premises of the office has been brought to our attention. That on or about __________ day of _____________, during a routine inspection of your car and belongings on your way out of the company premises, the security guard on duty, ___________ (name of guard) found a CPU (central processing unit), among your belongings.

Upon closer inspection of the inventory control sticker attached to the said CPU, it appears that the computer is owned by the company, a __________________ (describe computer’s technical specifications) previously issued to the sales and marketing department, particularly _____________ (name of employee entrusted with custody of laptop).

The computer was immediately turned over to the head of security and a written report of the incident was submitted to this office for appropriate action. In this regard, theft of company property constitutes serious misconduct, which is a just cause for termination of employment under the Labor Code.

In view of the foregoing, you are hereby required to submit a written explanation to this office within five (5) days from receipt of this notice, stating why the Company should not impose the penalty of dismissal for the act mentioned. Furthermore, you are invited to a conference on _________ (date) at ___________ (venue) where you shall be accorded the opportunity to express your side on the matter.

You may be accompanied by your own counsel at the said conference if you wish to be assisted by one. Your failure to submit your written explanation within the period provided shall be construed as a waiver of your right to be heard and the Company shall decide the matter on the basis of all records and evidence available to it.

Your compliance is strongly encouraged.

Very truly yours,

_________________
(Name and signature of authorized signatory

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