⏰ Time Theft ⌚️
Time theft occurs when employees receive compensation for hours they haven’t actually worked, leading to financial losses for employers and termination and potential legal consequences for employees. Time theft has been a term since 1996. It has become more prominent since COVID in 2020 when workers were forced to work from home. In Canada, with the rise of HYBRID and REMOTE workers, this issue has gained prominence.
What is Time Theft?
Time theft encompasses various actions, including:
- Buddy Punching: When one employee clocks in or out for another, allowing the latter to be paid for hours they didn’t work.
- Inflated Time Reporting: Employees may report working more hours than they actually did, either intentionally or due to misunderstandings.
- Excessive Personal Activities: Engaging in personal tasks, such as browsing social media, shopping online, working a side gig, or performing household tasks during work hours.
- Unauthorized Breaks: Taking longer or additional breaks or logging off early beyond what is permitted.
The Legal Implications in Canada
In Canada, time theft is considered a severe form of misconduct. In 2023, a British Columbia Civil Resolution Tribunal case highlighted that an accountant who worked REMOTELY was ordered to repay over $2,600 to her former employer, Reach CPA Inc. after electronic monitoring revealed a 50-hour discrepancy between her reported timesheets over a one-month period and activity recorded by the tracking software on her work computer. The accountant was also fired for time theft.
Employers are legally permitted to monitor employees during work hours, including electronically. However, if personal devices are used, employer monitoring may require employee consent. Employers must ensure that monitoring is reasonable and respects privacy rights.
Employer Remedies
Employers can take several actions in response to time theft:
- Disciplinary Measures: Depending on the severity, this can range from warnings to termination for cause.
- Seeking Repayment: Employers may pursue damages for breach of contract or intentional misrepresentation, though this requires clear evidence of the theft and the amount owed.
Preventive Strategies
To mitigate time theft, employers can:
- Implement Clear Policies: Establish and communicate expectations regarding work hours and acceptable use of company time.
- Utilize Time-Tracking Tools: Employ software that accurately records work hours and activities.
- Conduct Regular Audits: Periodically review time records to identify discrepancies.
Employers can maintain productivity and uphold trust within the workplace by proactively addressing time theft.
In summary, be conscientious while working HYBRID and REMOTE. Workers are expected to answer calls immediately or within a few minutes, respond to emails, texts or Teams messages quickly within working hours and to attend Teams meetings on time. If not, your employer could suspect time theft; if proven guilty, it could legally result in termination.