Filing Criminal Charges for Employee Theft, Estafa, and Falsification of Receipts in the Philippines

When trust is breached in a professional setting, the transition from "management issue" to "criminal case" requires a precise understanding of Philippine criminal law. For employers in the Philippines, dealing with dishonest employees involves navigating the Revised Penal Code (RPC).

Here is a comprehensive breakdown of the charges, the elements required for conviction, and the procedural steps for filing.


1. Understanding the Offenses

While often grouped together as "dishonesty," the law distinguishes these crimes based on how the act was committed.

A. Qualified Theft (Art. 310, RPC)

Theft becomes "Qualified" when it is committed with a grave abuse of confidence. Because an employee is trusted with access to the employer’s property, any unauthorized taking is treated more severely than ordinary theft.

  • Key Elements:
  1. Taking of personal property.
  2. The property belongs to another (the employer).
  3. The taking is done with intent to gain (animus lucrandi).
  4. It is done without the owner’s consent.
  5. The critical factor: It is committed with grave abuse of confidence arising from the employment relationship.

B. Estafa (Art. 315, RPC)

Estafa involves deceit or abuse of confidence resulting in damage. Unlike theft (where the property is "taken"), Estafa often involves property that was "received" by the employee in trust, but was then misappropriated.

  • Common Form (Estafa with Abuse of Confidence): The employee receives money or goods with the obligation to deliver or return them, but instead converts them for personal use.
  • Key Elements:
  1. Money, goods, or other personal property is received by the offender in trust or on commission.
  2. There is misappropriation or conversion of such property.
  3. Such misappropriation results in prejudice (loss) to the employer.
  4. A demand was made by the employer (usually).

C. Falsification of Commercial Documents (Art. 172, RPC)

This is often the "companion crime" used to hide Theft or Estafa. When an employee alters receipts, invoices, or ledgers, they commit Falsification.

  • Key Elements:
  1. The offender is a private individual (or a public officer not acting in an official capacity).
  2. The offender commits any of the acts of falsification (e.g., counterfeiting signatures, altering dates/amounts, making untruthful statements).
  3. The document is a commercial document (receipts, checks, vouchers, invoices).

2. Comparison Table: Theft vs. Estafa

Feature Qualified Theft Estafa
Possession Employee has "physical" possession but not "juridical" possession (no right over the item). Employee has "juridical" possession (given the item to hold/manage).
The Act The employee "takes" the item without consent. The employee "misappropriates" an item they were legally holding.
Penalty Higher; penalties are increased by two degrees compared to simple theft. Depends on the amount defrauded under the RA 10951 amendments.

3. The Procedure: From Discovery to Filing

Filing a criminal case in the Philippines follows a specific statutory path. Skipping steps can lead to the dismissal of the case.

Step 1: Internal Investigation and Documentation

Before heading to court, gather "hard" evidence:

  • Audit Reports: Certified findings from an accountant or auditor.
  • Affidavits: Sworn statements from witnesses (co-workers, clients).
  • CCTV Footage/Logs: Digital evidence of the act.
  • Administrative Due Process: Even if you plan to file a criminal case, you must follow the "Two-Notice Rule" for labor termination to avoid an illegal dismissal counter-suit.

Step 2: Filing the Complaint-Affidavit

The criminal process officially begins with the filing of a Complaint-Affidavit before the Office of the City or Provincial Prosecutor where the crime was committed.

  • The affidavit must narrate the facts and attach the evidence (Exhibits).
  • The respondent (employee) will be issued a subpoena to file a Counter-Affidavit.

Step 3: Preliminary Investigation

The Prosecutor determines Probable Cause.

  • If the Prosecutor finds enough evidence to believe a crime was committed, they will file an "Information" (the formal criminal charge) in Court.
  • If not, the case is dismissed (though this can be appealed via a Motion for Reconsideration or a Petition for Review to the DOJ).

Step 4: Issuance of Warrant of Arrest

Once the case is filed in Court, the Judge examines the records. If satisfied, they will issue a Warrant of Arrest.

Note: Qualified Theft is generally a non-bailable offense if the value involved is high, making it a very potent legal tool for employers.


4. Strategic Considerations

  • Complex Crimes: If the falsification was used specifically as a means to commit Estafa, the charge may be "Complex Crime of Estafa Through Falsification of Commercial Documents."
  • Civil Liability: You can claim the return of the stolen money/property (civil indemnity) within the same criminal case.
  • The "Labor" Trap: Do not assume that a criminal case automatically justifies firing an employee without following the Labor Code. Ensure the administrative process (Notice to Explain and Notice of Decision) runs parallel to the criminal preparation.

Next Steps: Would you like me to draft a template for a Demand Letter or a sample Notice to Explain (NTE) specifically tailored for an employee theft scenario?

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.