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Larceny by an employee

Larceny by servant — better known as employee theft — is stealing from your own employer: cash from the till, stock from the storeroom, or money quietly moved into your own account. It's ordinary stealing with one important extra — a breach of trust. Because your employer relied on you, the law treats it more seriously than general theft. In most states the ceiling is double — up to 10 years — even for a first offence.

The whole idea in one picture

Trusted with it, then taking it

The stealing itself is ordinary — it's the trust behind it that changes everything. An employer let you in, and that's what lifts the penalty above plain theft.

1 · Trusted staff given access at work $ $ 2 · Takes from the till cash · stock · funds 3 · Breach of trust what makes it worse 4 · Penalties heavier than theft

What counts as employee theft

It's taking your employer's property while you work for them — anything from petty cash to company funds. Common examples:

Common examples

  • Taking cash from a till or safe
  • Stealing stock, tools, or supplies
  • Diverting refunds or sales into your own account
  • Misappropriating business funds or invoices

What they must prove

  • You were employed by the owner
  • You took the property without consent
  • You acted dishonestly, meaning to keep it for good
The trust is the difference: the act is just stealing — but because your employer relied on you, the law treats it as a breach of trust and sets a higher ceiling than ordinary theft. That's true even on a first offence.

How it's usually discovered

Employers tend to spot a pattern before police are involved — then the records do the rest:

How employers find it

  • Internal audits or stocktakes
  • CCTV or point-of-sale monitoring
  • Whistleblowers or staff reports
  • Forensic accounting or payroll reviews

What police do

  • Interview the person accused
  • Collect financial records, surveillance or admissions
  • Execute warrants in more serious matters

What happens at court

Where it's heard depends on how much was taken and how complex it is:

  1. Lower-value matters stay in the local or magistrates' court.
  2. Serious or high-value matters go to a higher court.
  3. The steps run from first mention and plea, through the prosecution's evidence, to a hearing or sentencing.
  4. The penalty turns on the value, the breach of trust, and your prior record.
Choose your state

Penalties where you are

New South Wales

NSW
Most serious cases — top of the scale
Up to 10 years in jail

Charged as larceny by a clerk or servant. Lower-value matters can stay in the Local Court, up to 2 years.

Read this as a ceiling, not a forecast. The value taken, the period it ran over, and any repayment all matter. A small, one-off amount paid back sits far below a sustained, high-value betrayal of trust.
Why it's heavier

Which court

Common defences

These cases often turn on whether the taking was dishonest — or just a misunderstanding about what you were allowed to do:

No dishonest intent

The property wasn't taken dishonestly.

You believed you were allowed

A genuine mistake about your authority to use it.

Claim of right

You honestly believed you were entitled to the money or goods.

Duress

You acted under threat or coercion.

Accused of theft at work? Talk to a lawyer.

Whether it was dishonest or an honest misunderstanding about your authority is often the whole case — and repayment can shape the outcome. We can point you to lawyers in your state.

Read this first

This is general information, not legal advice

This page explains how these charges generally work — it can't tell you what will happen in your case. Employee theft is charged under each state's larceny or theft laws, with the breach of trust treated as serious. If you're under investigation or charged, talk to a criminal lawyer before answering questions.

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While we don’t provide legal advice—as every case is unique and only a qualified lawyer is permitted to do so—we’ll do our best to guide you with relevant general information. If we’re unable to assist, we can refer your query to a criminal lawyer.