Employee Time Theft in the UK: Meaning, Laws & Best Ways to Prevent It in 2024
What is time theft UK companies are facing, and how can this be prevented? Our 2024 guide to employee time theft will help you better understand the types of time theft, establish proper processes to conduct investigations within the legislative framework and provide you with the best tips and methods to avoid time theft altogether.
What is workplace time theft?
Workplace time theft refers to the unauthorised use of work hours for activities that do not contribute to job-related tasks. It occurs when employees engage in activities that waste time during their designated working hours, leading to decreased productivity and potential financial losses for the employer.
Workplace time theft can have a significant impact on productivity, morale, and the overall success of an organisation. Employers often implement measures such as time-tracking systems, monitoring software, and clear policies to prevent and address time theft. Creating a culture of accountability and open communication can also help deter such behaviours and foster a more productive work environment.
Types of time theft
Time theft can take multiple forms and differ in severity and intentionality, from accidental late arrivals to fraudulent and falsified timesheets. Let’s take a look at some of the most common time theft types UK companies should understand in order to respond properly.
Arriving late or leaving early
This is one of the most common time theft scenarios that occurs when employees arrive late for work or leave before the end of their scheduled shift without proper authorisation. Punctuality is crucial for maintaining productivity and meeting work deadlines, as well as holding organisational culture to high standards.
Unscheduled breaks
Employees taking unscheduled breaks refers to instances where individuals go on breaks without adhering to the established break schedule, which is another common form of time theft. This can include taking longer breaks than allowed or taking breaks at times not designated by the company.
Extended lunches
Similar to unscheduled breaks, extended lunches involve employees exceeding the time allocated for their lunch breaks. This could result in individuals taking longer breaks than permitted, potentially impacting productivity and the smooth flow of work.
Buddy punching
Buddy punching is a more severe type of time theft. This is intentional fraudulent behaviour that occurs in situations where time and attendance are tracked by manual time clocks or electronic time clocks without sufficient security measures when an employee asks a colleague to clock in or out on their behalf. This leads to inaccurate records of when they were actually present at work, which can cause serious issues in productivity and financial losses due to overpayment of wages.
Falsifying timesheets
Falsifying time sheets is another severe type of time theft. This involves deliberately altering or falsifying records to show more hours worked than the actual time spent on the job, leading to overpayment and inaccurate tracking of employee work hours while creating serious issues in company operations, services and productivity.
Excessive personal calls and social media use
Excessive personal Internet and social media use during work hours can distract employees from their responsibilities. This includes activities such as browsing social media sites, shopping online, or engaging in other non-work-related online activities.
Unauthorised overtime
Unauthorised overtime is generally considered a form of time theft, as it involves employees working additional hours without proper authorisation. Time theft broadly refers to any situation where employees receive compensation for time not spent on work-related tasks or when they engage in activities that compromise productivity during working hours.
While this differs from other types of time theft as the employee is doing their work, it can lead to compensation without approval, resource misuse, company policy violation and even legal and compliance issues.
What are the time theft laws in the UK?
The Working Time Regulations in the UK don’t describe the intricacies of time theft specifically but provide a general outline of a legal framework for taking action against time theft. This, for example, sets a legitimate foundation for employee time theft punishment that UK companies can implement.
Employee extra supervision to prevent reoccurrence
Supervision can be a legitimate means to prevent and address workplace issues, including time theft. The reasons for additional supervision should always be clearly communicated to all employees subject to this. Extra supervision should always be in accordance with organisational policies and remain consistent to avoid discrimination. It should always be reasonable in its proportion and never violate privacy and personal data protection laws.
Written or final written warning
Official warnings are good measures for communicating the seriousness of the specific time theft issues employees while also being an essential tool for employers to leave a paper trail in case the issues cause future disputes. All written warnings should include the nature of the time theft allegations, a clear statement of the misconduct, the impact on the organisation, the specific improvement required and the consequences of further misconduct.
Disciplining employees
For more serious or frequent time theft cases, UK employers can also discipline their employees. This has to be done according to labour laws, adhering to notice periods and providing written statements of employment particulars. Disciplinary proceedings should always be consistent to avoid discrimination and have due process while providing employees with an appeal process. All disciplinary measures, such as fines, should be proportionate to the specific time theft case.
Dismissal for gross misconduct
Dismissal for gross misconduct should happen only if the employer can demonstrate concrete evidence. Otherwise, these cases can be taken to the Employment Tribunal as unfair dismissals. Dismissal should only happen for severe violations, such as falsified timesheets and buddy punching. It can also be the last resort for employees who are chronically late or, in any other way, not following official schedules after previous warnings and disciplinary actions.
What to do if your employee is stealing time?
If you are a UK employer faced with a time theft case, it’s extremely important to be methodical and thorough when managing the case. A well-thought-out and detailed process can not only solve the specific issue but be better prepared for the future or even avoid time theft.
1. Review company policies
Ensure that your company has clear policies regarding attendance, working hours, and time theft. Familiarise yourself with these policies to ensure that your actions managing the specific time theft case are in line with company guidelines. This is a good measure to see if company policies require reviewing or updating.
2. Gather evidence
Before confronting the employee, gather sufficient evidence to support your claim. This may include time and attendance records, surveillance footage, or any other relevant documentation. When gathering evidence, ensure that no privacy or data protection laws are violated.
3. Conduct a private meeting
Schedule a private meeting with the employee to discuss your concerns. Approach the conversation with a neutral tone and avoid making accusations until you have allowed the employee to explain their side. Treat the employee with respect and listen without interrupting to avoid tensions and create a space for truthful and calm communication.
4. Present the evidence
During the meeting, present the evidence you have gathered in a clear and objective manner. Allow the employee to respond and provide their perspective on the situation. Assume that their intentions were not malignant if evidence does not specifically contradict this.
5. Listen and empathise
Listen actively to the employee's explanation. There may be valid reasons for their behaviour, such as personal issues or misunderstandings. Understanding their perspective can help you determine the appropriate course of action.
6. Document the discussion
Document the details of the discussion, including the evidence presented, the employee's response, and any commitments made during the meeting. This documentation can be important if further action is required.
7. Implement consequences
If the evidence supports the conclusion that time theft has occurred, implement appropriate consequences in line with your company's policies. Consequences may range from verbal warnings to more severe disciplinary actions, depending on the severity of the offence.
8. Offer guidance and support
If the time theft is a result of personal issues or challenges, consider offering support or resources to help the employee address those issues. This could include counselling services, flexible work arrangements, or assistance programs.
9. Monitor and follow up
Monitor the employee's behaviour after the initial discussion and follow up as needed. If the time theft persists, additional actions may be necessary, such as escalating the disciplinary process or seeking further HR intervention.
How to prevent time theft in the workplace: 7 tips for employers and managers
Before confronting the employee, gather sufficient evidence to support your claim. This may include time and attendance records, surveillance footage, or any other relevant documentation.
1. Set up clear time theft policies
The first thing is to set up ground rules. If your employees know and understand what constitutes time theft and what its consequences are, you can already eliminate the cases of unintentional time theft.
2. Enable open communication
Be sure to communicate your organisational policies about time theft, as well as being open to employees who have concerns or challenging situations in their personal lives. Providing open communication channels for your employees to explain their personal emergencies will eliminate the suspicions of time theft.
3. Use time and attendance software
Time-tracking software creates accountability within the organisation and avoids disputes over job site attendance and actual working hours. Modern GPS time clock apps can entirely eliminate some forms of time theft, such as fraudulent timesheets or buddy-punching.
4. Allow reasonable flexibility
All employment relationships are two-way streets, and providing reasonable flexibility for your employees will help you create a trusting work environment and motivated employees. In many cases, this alone can help avoid time theft used for job-hopping purposes.
5. Create a culture of accountability
It’s always easier to be accountable for your work if this means that other employees depend on you. Creating a culture where employees understand that they all depend on each other can be an efficient way to increase personal accountability. This can also be rewarding in itself and help employees grow in their professional positions.
6. Review your break management process
The European Working Time Directive, which acts as a basis for Working Time Regulations in the UK, states that each employee who works at least 6 hours per day is entitled to a 20-minute unpaid break. As an employer, you have the option to implement both paid and unpaid breaks to create additional flexibility. For example, using a time-tracking system, in addition to the one mandatory break, you can set up optional unpaid breaks for employees to use in legitimate cases, such as doctor appointments.
7. Avoid timesheet errors
One of the worst situations for employers and supervisors is wrongly accusing employees of time theft. And this can simply be an occurrence of mistakes in timesheets due to human errors. Anything that needs manual input, whether an old-school paper timesheet or a spreadsheet in a cloud, is prone to this issue. Having a time tracking software with an automated timesheet calculator will help you completely avoid this issue.
Ensure efficient and fair work time tracking with Parim
Track employee time with Parim GPS time clock to ensure attendance at job sites and avoid time theft and fraudulent behaviour, such as buddy punching or forging timesheets. Parim lets you set up custom break time rules and locations for employees to clock in. Managers and supervisors receive real-time updates for each time an employee has clocked in or out of their shift. This provides a quick overview of who is at their shifts, who is on a break and if anyone is running late.
All timesheets will be automatically created based on employee time clock data with automatically calculated salaries to avoid disputes and provide a quick and efficient process. Avoid human errors, reduce management’s workload and overhead costs and move to an efficient time-tracking system.
