Workplace Fraud

April 2012

Fraud is the intentional wrongful obtaining of a benefit and fraud risks are a threat to every type of business.

The risk can be of a business or its employees committing a fraud or of the business being the victim of a fraud committed by its own employees or a third party.

Good practice measures for deterring and detecting fraud include having an effective anti-fraud policy in place which is supported and communicated in the workplace.

This policy statement should set out the formal procedures for employees to use to report fraud. Every allegation of fraud should be fully investigated by following the formal procedures set out in the policy statement.

A well drafted policy statement will ensure compliance with employment and criminal laws while also protecting the interests of the person accused of fraud and the person who reports the fraud.

In any subsequent unfair dismissal case, the employer must be able to establish that the view was formed based on reasonable grounds, having completed the formal investigation process, that the employee was involved in gross misconduct.

If you require further information on fraud in the workplace please contact O’Callaghan Kelly.

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