"Ordinary" theft is a misdemeanor punishable by up to 3 years of imprisonment.
Why is theft from an employer much more serious than ordinary theft?
"Ordinary" theft is a misdemeanor punishable by up to 3 years of imprisonment. Theft by an employee from an employer, by contrast, is a felony punishable by up to 7 years of imprisonment, more than double. Section 391 of the Penal Law provides that an employee who steals property of his employer worth more than 1,000 NIS is liable to seven years of imprisonment.
The rationale is clear: special relations of trust exist between employer and employee. The employer entrusts the employee with keys to the business, access to money, merchandise, and at times managerial authority. Theft arising from trust constitutes a serious betrayal, and the legislature treats it accordingly. The courts do not hesitate to impose actual prison sentences even for first offenses, and prosecution seeking actual imprisonment is routine practice at the prosecution office.
Types of theft offenses by an employee
Theft by an authorized person, someone who received permissions and authority to act on behalf of an organization and stole while exploiting them, constitutes particularly serious embezzlement. The penalty: up to 7 years of imprisonment.
Theft by a corporate officer, a CEO, director, or senior manager who stole from the corporation. The offense may be accompanied by additional offenses of money laundering and false entry in corporate documents. The penalty: up to 7 years of imprisonment.
Theft by a public employee, the most severe of all. The public entrusts its trust and resources to the public employee, and breaching that trust is an especially serious betrayal. The penalty: up to 10 years of imprisonment.
What does the court consider in sentencing?
The employee's status and authority in the organization; the amount of the theft and its nature; the damage caused to the employer; the nature of the business; the employee's personal circumstances. Theft of 1,500 NIS by a waiter is serious, but it is not comparable to embezzlement by a bank clerk involving millions.
Warning: employers who inflate the amount of the theft
A common and dangerous phenomenon: an employer who discovered a theft takes advantage of the opportunity and "pins" old shortages and thefts by other employees on the worker. In a case I handled, an employee who was filmed stealing 300 shekels from the business cash register was accused of stealing more than 500,000 NIS based on documents the employer submitted with the assistance of a private investigator and an accountant. This is why every suspicion of theft requires immediate legal advice; staying ahead of the employer is critical.
A private investigation on behalf of the employer, your rights
A private investigator acting on behalf of the employer often crosses the bounds of what is permitted. He may seat the employee in a closed room, not allow him to leave, and try to extract a confession from him, as if this were a police interrogation. In practice, in a private investigation the person being questioned does not have the legal protections he has with the police: the right to remain silent, the right to avoid self-incrimination, and the right to consult a lawyer.
Pressure such as "if you do not confess, we will file a complaint," "we will deny you compensation if you do not admit," or "everyone will know you are a thief," is unlawful. In many cases, a confession given under pressure can be disqualified and challenged anew. Even if you confessed to the employer, that is not the end.
Police interrogation, mistakes that must not be made
The most critical stage in the process is the police interrogation. Police investigators use various interrogation tactics: the good cop and the bad cop, psychological pressure, confrontations with other employees, a polygraph test, and more.
Do not make the following mistakes: confessing in the belief that you will be forgiven, the opposite is true; believing the investigator, police investigators are permitted to lie to the person being questioned as part of interrogation tactics; minimizing the seriousness of the case, the default is an actual prison sentence; destroying evidence, the offense of obstruction of investigative proceedings will be added to the indictment; coordinating versions, in the interrogation room everyone looks after himself.
The hearing process, an opportunity that must not be missed
Theft from an employer is a felony offense, and therefore the accused is entitled to a hearing before an indictment is filed. This is a substantive opportunity: an experienced criminal lawyer reviews the evidentiary material, identifies flaws, contradictions, and inaccuracies, and conducts negotiations with the prosecutor. Possible outcomes: closing the case; an agreed plea arrangement; amendment of the indictment to a lesser offense such as obtaining something by deceit, a change that dramatically affects the course of the proceeding and the chances of a resolution.
Legal representation in theft from employer cases
Israel Arama, a former member of the Tel Aviv District Attorney's Office, represents both employees suspected of theft and employers who have fallen victim to it. From the employee side, familiarity with how indictments are built makes it possible to expose flaws in the evidence and prevent disproportionate harm. From the employer side, guiding the private investigation in a manner that preserves the evidentiary value in court. In both cases, the earliest consultation is the most influential. Contact us for an initial consultation without obligation.
Why is theft from an employer much more serious than ordinary theft?
"Ordinary" theft is a misdemeanor punishable by up to 3 years of imprisonment. Theft by an employee from an employer, by contrast, is a felony punishable by up to 7 years of imprisonment, more than double. Section 391 of the Penal Law provides that an employee who steals property of his employer worth more than 1,000 NIS is liable to seven years of imprisonment. The rationale is clear: special relations of trust exist between employer and employee. The employer entrusts the employee with keys to the business, access to money, merchandise, and at times managerial authority. Theft arising from trust constitutes a serious betrayal, and the legislature treats it accordingly. The courts do not hesitate to impose actual prison sentences even for first offenses, and prosecution seeking actual imprisonment is routine practice at the prosecution office.
What does the court consider in sentencing?
The employee's status and authority in the organization; the amount of the theft and its nature; the damage caused to the employer; the nature of the business; the employee's personal circumstances. Theft of 1,500 NIS by a waiter is serious, but it is not comparable to embezzlement by a bank clerk involving millions.
A private investigation on behalf of the employer, your rights — what is important to know?
A private investigator acting on behalf of the employer often crosses the boundaries of what is permissible. He may seat the employee in a closed room, not allow him to leave, and try to extract a confession from him, as if this were a police interrogation. In practice, in a private investigation the person being questioned does not have the legal protections he has at the police: the right to remain silent, the right against self-incrimination, and the right to consult a lawyer. Pressure such as "If you do not confess, we will file a complaint," "We will deny you compensation if you do not admit it," or "Everyone will know you are a thief," is unlawful. In many cases, it is possible to disqualify a confession given under pressure and raise arguments anew. Even if you confessed before the employer, it is not the end.
The hearing process, an opportunity not to be missed — what is important to know?
Theft from an employer is a felony offense, and therefore the accused is entitled to a hearing before an indictment is filed. This is a substantive opportunity: an experienced criminal lawyer reviews the evidentiary material, identifies flaws, contradictions, and inaccuracies, and conducts negotiations with the prosecutor. Possible outcomes: closing the case; an agreed plea arrangement; amendment of the indictment to a lesser offense such as obtaining something by deceit, a change that dramatically affects the course of the proceeding and the chances of a resolution.
This information is for initial orientation about the service and contact process. It is not individual legal advice.
Initial call No obligation