In Canada, stealing from your employer is rarely treated as simple theft. Under the Criminal Code, employee theft is considered a “breach of trust,” which is a major aggravating factor. If the Crown proves you abused your position to steal, you are highly likely to face real jail time, even for a first-time indictable offence.
Being accused of workplace theft is a terrifying experience that can instantly destroy your career. ㄈ Whether the missing funds involve a few hundred dollars from a retail cash register in Toronto or a sophisticated corporate embezzlement scheme in Calgary, the police take these matters incredibly seriously. Many employees mistakenly believe that if they simply apologize and return the money, the problem will disappear. However, the Canadian justice system views employee theft through a very harsh lens.
Generally, criminal law in Canada punishes those who steal from their bosses much more severely than a stranger who shoplifts from a store. This is because the employment relationship relies on mutual trust. When an employee steals, they violate that trust, triggering specific sentencing principles designed to deter others. This article explains how the Crown elevates standard theft into a serious breach of trust case and how you can defend yourself.
Step-by-Step Process in Canada: Defending a Breach of Trust Charge
When an employer suspects theft, they rarely handle it quietly. 📍 They will usually conduct an internal investigation and then hand the evidence over to the local police. If you are charged, here is the process your criminal defence law firm will navigate to protect your freedom.
Step 1: The Internal Investigation and Arrest
The process usually begins with an audit or a review of security footage. Employers in provinces like Ontario and British Columbia will often call the employee into a meeting, sometimes with a loss prevention officer, to extract a confession. You have the right to remain silent. If the police are called, you may be arrested and charged with Theft Over $5,000 or Theft Under $5,000.
Step 2: Analyzing the Crown’s Disclosure
Once you hire a lawyer, they will request the “disclosure” package from the Crown prosecutor. 📄 This contains all the evidence against you, including accounting records, witness statements, and video surveillance. Your lawyer will meticulously review this to see if the Crown can actually prove beyond a reasonable doubt that you took the money, rather than it being an accounting error or the fault of another employee.
Step 3: Assessing the Breach of Trust Factor
The Crown must prove that a relationship of trust actually existed. Under Section 718.2 of the Criminal Code, a breach of trust is an aggravating factor for sentencing. The court will look at your level of responsibility. A senior bank manager in Halifax who embezzles funds commits a higher breach of trust than a temporary teenaged cashier who pockets a twenty-dollar bill.
Step 4: Negotiating Restitution and Plea Deals
If the evidence is overwhelming, your law firm may focus on damage control. 💰 Often, a lawyer can negotiate a plea deal where you plead guilty to a lesser charge (perhaps a summary conviction instead of an indictable offence) in exchange for paying full restitution (giving the money back) upfront. While restitution does not erase the crime, it heavily influences the judge to impose a lighter sentence, such as a conditional sentence (house arrest) instead of real jail time.
How Much Does it Cost to Defend an Employee Theft Charge?
Hiring a skilled criminal defence lawyer is expensive, but a criminal record will cost you far more in lost future earnings. Here are the typical legal costs you might face across Canada:
| Law Firm Retainer (Initial Deposit) | $2,500 to $5,000 CAD |
| Negotiating a Plea & Restitution | $3,000 to $7,000 CAD |
| Taking the Case to a Full Trial | $10,000 to $25,000+ CAD |
| Forensic Accountant (If needed for defence) | $5,000 to $15,000 CAD |
How Long Does the Process Take?
The criminal justice system moves slowly. 🕑 From the date of your arrest, it usually takes 2 to 4 months just to receive all the disclosure from the Crown. If you decide to plead guilty and pay restitution, the matter might be resolved in 6 to 9 months. If you plead not guilty and take the case to trial, you could be waiting 12 to 18 months for a final verdict.
Frequently Asked Questions (FAQ)
Will I definitely go to jail for stealing from my employer?
Not necessarily, but the risk is high. Because it is a breach of trust, judges lean towards jail time to deter others. However, a good lawyer can often argue for house arrest or probation if it is your first offence and you repay the money.
What is the difference between Theft Over and Theft Under $5,000?
Under Section 334 of the Criminal Code, both are hybrid offences, meaning the Crown has the election to prosecute them either by indictment or as a summary conviction. For Theft Over $5,000, if the Crown proceeds by indictment, the maximum penalty is 10 years in prison; if they proceed summarily, the maximum is limited to two years less a day. Theft Under $5,000 also operates as a hybrid offence but generally carries lighter penalties in practice.
Can my boss just fire me without calling the police?
Yes. Many employers prefer to fire you for “just cause” and avoid the public embarrassment of a criminal trial. However, you should never sign a confession without speaking to a lawyer first.
If I pay the money back, will the charges be dropped?
No. Once the police charge you, the employer cannot simply “drop” the charges. The Crown prosecutor is the only one who can withdraw the case, though restitution makes them much more likely to negotiate.
Can I get a pardon (record suspension) later?
Yes. If you are convicted, you must wait 5 years (for a summary conviction) or 10 years (for an indictable offence) after completing your entire sentence before applying to the Parole Board of Canada for a record suspension.
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