Why you don’t have to worry about firing T&E offenders anymore
October 6, 2008 by Jared BilskiPosted in: Benefits, Communication tips, Efficiency, Fraud prevention, In this week's e-newsletter, Latest news & views, Management issues
Good news: You can make examples out of T&E fraud offenders — and the courts now have your back.
A recent court ruling goes a long way in alleviating any fears companies have about taking decisive action against employees with questionable T&E reports.
Here’s what happened:
A former Staples salesman was fired for falsifying his expense reports and violating the company’s T&E and ethics policy — his termination was based on an internal investigation.
Staples came down hard on the fraudulent salesman. He was not only terminated, his vested right to stock options were refused, plus benefits from Staples’ severance plan were denied. The company justified its actions by saying he was fired “for cause.”
Predictably the former employee sued, but he lost — the court sided with Staples on everything, including the refusal of stock options and severance benefits.
If you plan on taking action against T&E fraud culprits, make sure:
- Your company’s handbook clearly indentifies T&E fraud as “just cause” for termination, and
- You have a policy that clearly defines exactly what counts as T&E fraud at your company.
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Tags: Benefits, For Cause, Salesman, Staples, T&E fraud, Termination
