Larceny by Servant or Employee – Laws & Penalties in Australia

Larceny by servant or employee is a serious criminal offence in Australia that involves an employee stealing from their employer. It is treated more severely than general theft because it constitutes a breach of trust.

Whether it’s stealing cash from a register, taking inventory, or transferring company funds for personal use, larceny by an employee can result in criminal charges, jail time, and a permanent record—even for first-time offenders.

This guide outlines what larceny by servant means, how charges are laid, the court process, defences that may be available, and a breakdown of the laws and penalties across each Australian state and territory.

What Is Larceny by Servant or Employee?

This offence refers to the unlawful taking of property by an employee from their employer during the course of employment. It differs from regular theft due to the element of trust between the employer and employee.

Common examples include:

• Taking cash from a till or safe

• Stealing stock, tools, or supplies

• Diverting refunds or sales into a personal account

• Misappropriating business funds or invoices

To prove the offence, the prosecution must establish:

1. You were employed by the victim

2. You took property without consent

3. You acted dishonestly, intending to permanently deprive the employer

How Are Charges Laid by Police?

Employers often discover misconduct through:

• Internal audits or stocktakes

• CCTV or point-of-sale monitoring

• Whistleblowers or staff reports

• Forensic accounting or payroll reviews

Once reported, police may investigate and lay charges after:

• Interviewing the accused

• Collecting financial records, surveillance, or admissions

• Executing warrants (for more serious matters)

Court Process for Employee Theft Charges

Larceny by servant is usually heard in:

• Local or Magistrates’ Court (for minor matters or where value is low)

• District/County or Supreme Court (for serious or high-value offences)

The process involves:

1. First mention – Plea entered

2. Brief of evidence – Disclosed to defence

3. Hearing or sentencing – Depending on plea

4. Penalty – Based on value, breach of trust, and prior record

Defences to Larceny by Servant or Employee

Possible defences include:

• Lack of intent – The property was not taken dishonestly

• Mistake or misunderstanding – You believed you had authority

• Claim of right – You believed you were entitled to the money/property

• Duress – You acted under threat or coercion

• Mental impairment – Affecting your judgment at the time

Legal advice is essential to assess the strength of the prosecution case and negotiate outcomes.