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- An employer’s property is an integral part of the business infrastructure.
- Employer property includes both physical and intellectual assets.
- Disciplinary action may be taken against an employee for loss or damage to the employer’s property.
- Each incident of loss or damage will be evaluated to determine whether it resulted from negligence or a bona fide mistake.
- The incident should first be thoroughly investigated, and all relevant evidence collected.
An employer’s property is an integral part of the business infrastructure. Any loss, damage, accidental misuse, intentional misuse, or waste of this property constitutes serious misconduct, placing unnecessary strain on the employer to repair or replace it.
Employer property includes both physical and intellectual assets. Physical assets may include workplace premises, buildings, equipment, machinery, fuel, products, stationery, business vehicles, cell phones, Internet access, and working hours. Intellectual property encompasses, but is not limited to, trade secrets, trademarks, patents, and other confidential information.
Disciplinary action
In cases of loss or damage to the employer’s property, the employer must act in accordance with applicable labour legislation governing the employer-employee relationship. Disciplinary action may be taken against an employee for such loss or damage.
However, an employee may never be dismissed, even for a valid reason, without first undergoing a disciplinary hearing. The employer must give the employee the opportunity to present his or her version of events.
The disciplinary hearing ensures that a fair process is followed and that there is substantive evidence supporting any dismissal. Substantive evidence refers to proof that the loss or damage to the employer’s property resulted from the employee’s misconduct.
Employees are expected to treat the employer’s property with care and attention, avoiding any damage or loss. Each incident of loss or damage will be evaluated to determine whether it resulted from negligence or a bona fide mistake (a mistake made in good faith). Based on this assessment, the employer will decide the appropriate disciplinary action, if any.
Evaluation and prevention
When evaluating damage or loss on a case-by-case basis, employers must follow a structured process. The incident should first be thoroughly investigated, and all relevant evidence collected. The employee(s) involved, as well as any witnesses, should be consulted to gain a clear understanding of the event. Based on the findings, the necessary corrective actions should be determined, and disciplinary measures may be applied in accordance with the workplace’s disciplinary policies and rules.
Employers should also implement proactive measures to minimise the risk of misconduct, such as loss, damage, misuse, or waste of the employer’s property:
- Employment contracts: Include clauses that reduce workplace risks.
- Disciplinary code: Keep it relevant, up-to-date, and aligned with potential transgressions and applicable sanctions.
- Employee awareness: Ensure all employees are familiar with the disciplinary code, workplace policies, and procedures, especially regarding company property and its use.
- Report misconduct: Encourage employees to report dishonest behaviour. Every employee has a fiduciary duty to act in good faith, uphold the employer’s best interests, and report misconduct by co-workers.
- Clear job descriptions: Provide detailed descriptions outlining each employee’s duties and the employer’s expectations.
Minimising workplace risks is vital and requires clear communication of all rules, regulations, policies, and procedures. Employers should hold regular meetings with employees to review the disciplinary code and workplace policies, properly document these sessions, and maintain signed attendance records.
These proactive steps foster a culture of accountability and ensure that appropriate disciplinary action can be taken when necessary. – Christoff Pretorius, legal advisor, LWO Employers Organisation
The LWO Employers Organisation assists employers to comply with labour law, and to use it to their advantage to protect their business. As a registered employers’ organisation with the Department of Employment and Labour, the LWO has the right to represent members at the Commission for Conciliation, Mediation and Arbitration (CCMA). Take note that this article is not legal advice – consult one of our legal advisors about any specific legal problem or matter. For more information, send an email to info@lwo.co.za or visit www.lwo.co.za
