Misuse of employer’s property

The employer’s property forms an integral part of the business infrastructure, and any loss, damage, misuse, willful misuse and waste thereof is serious misconduct that places unnecessary pressure on the employer to repair and/or replace the property.

The employer’s property is defined as both physical and intellectual assets. Physical assets include but are not limited to the workplace premises, buildings, equipment, machinery, fuel, products, stationary, business vehicles, cell phones, internet, working hours, etc. Intellectual property includes but is not limited to assets of the business:  secrets, trademarks, patents, confidential information, etc.

Labour law

In instances of loss and/or damage to the employer’s property, the employer should act in terms of the relevant labour law with respect to the employer-employee relationship. The employer can take disciplinary action against an employee for the damage and/or loss of the employer’s property.

Employers must always remember that an employee can never be dismissed, even with a valid reason, without first holding a disciplinary hearing to ensure that a fair procedure is followed and that there is substantive reason (proof) for the dismissal.  The substantive proof in this regard refers to the damage that the employer’s property suffered as a result of the employee’s misconduct among other things. 

Due care and attention

Each employee should take cognisance of the employer’s property and use it with due care and attention and without causing any damage thereto and/or loss thereof. Each case regarding damage and/or loss of the employer’s property will need to be evaluated by the employer to determine whether the employee was negligent or whether it was merely a bona fide mistake (mistake made in good faith) that caused the damage or loss. Based on this evaluation, the employer can determine what would be the next step in terms of disciplinary action, if any.

Evaluating the damage/loss

When the employer evaluates the damage/loss on a case-to-case basis the following process should be followed:

• Investigate the incident and gather all evidence;
• Consult with the employee(s) in question and witnesses to get a clear picture of the incident.
• Determine the necessary corrective action to be applied;
• Take disciplinary action if needed depending on the outcome of the investigation.

Proactive measures

It is recommended that employers implement proactive measures to limit the risk of misconduct referring to loss, damage, misuse and waste of the employer’s property. Employers should also take care to:

• Draft employment contracts which include proactive clauses that will reduce the employer’s risk in the workplace.
• Ensure that the disciplinary code is relevant and up to date regarding offences and appropriate sanctions.
• Also ensure that all employees are made aware of what the disciplinary code entails.
• Encourage employees to report dishonest conduct of co-workers. Every employee has the fiduciary duty to act in good faith and in the employer’s best interest, and report any misconduct by co-workers.
• Ensure that every employee has a detailed job description to clarify his/her duties and the employer’s expectations.
• Ensure that employees are well aware of the policies and procedures to be followed in the workplace relating to the employer’s property and the use thereof.

Limit your risk

It is vital for employers to limit risk in the workplace as far as possible. The employer must ensure that all rules and regulations, policies and procedures are brought under the employees’ attention and make sure that they are aware thereof. Hold regular meetings about the disciplinary code, rules and policies and procedures, and make sure that the meetings are well documented and that employees sign an attendance register.

These proactive steps will ensure that the necessary disciplinary action can be taken when needed.

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