Theft of Company Property in the Philippines

Legal Framework, Procedures, and Consequences

1. Overview

“Theft of company property” covers any unauthorized taking of an employer’s assets—cash, goods, equipment, data, or other valuables—by an employee, officer, contractor, or outsider. In the Philippines, it can trigger three parallel tracks of liability:

Track	Governing Source	Typical Sanctions
Criminal	Revised Penal Code (RPC) arts. 308-316, as amended by Republic Act 10951; Presidential Decree 1612 (Anti-Fencing Law); Cybercrime Prevention Act (RA 10175) for digital assets	Imprisonment, fines, accessory penalties (e.g., perpetual disqualification from public office)
Civil	Civil Code arts. 20, 19 & 1170-1177; Code of Criminal Procedure arts. 100-107	Restitution, damages, interest, attorney’s fees
Administrative / Labor	Labor Code art. 297 (a) (serious misconduct & fraud); DOLE D.O. 147-15; company policies; for government workers: RA 6713 & CSC rules	Dismissal for just cause, forfeiture of benefits, perpetual disqualification, suspension

2. Criminal Liability

2.1 Theft vs. Qualified Theft vs. Estafa

Crime	Core Element	Typical Fact Pattern	Penalty Basis
Theft (Art. 308-309 RPC)	Unlawful taking without abuse of confidence	Break-in, outsider steals laptops	Table in § 2.2
Qualified Theft (Art. 310 RPC)	Theft with grave abuse of confidence (e.g., employee, house helper, warehouse man)	Cashier pockets sales; storekeeper spirits out stock	Two degrees higher than simple theft
Estafa (Art. 315 §1-b RPC)	Property received in trust or on commission is misappropriated	Treasurer entrusted with funds diverts them	Same table as § 2.2 (value-dependent)

Key distinction: When the employee already had material or juridical possession of the property (e.g., signatory to a vault), misappropriation is prosecuted as estafa; if he only had physical custody and covertly removes the object, the charge is qualified theft (People v. Dizon, G.R. 129747, 21 Jan 1999).

2.2 Penalties After RA 10951 (2017)

Value refers to total loss, not merely unrecovered balance.

Value of property (₱)	Simple Theft (Art. 309 RPC)	Qualified Theft (Art. 310) = two degrees higher
> 2,200,000	Reclusion temporal (12 yr 1 d – 20 yr)	Reclusion perpetua (20 yr & 1 d – 40 yr)
1,200,000 – 2,199,999	Prisión mayor (8 yr 1 d – 12 yr)	Reclusión temporal
600,000 – 1,199,999	Prisión mayor min-med (6 yr 1 d – 10 yr)	Prisión mayor max-Reclusión temporal
20,000 – 599,999	Prisión correccional med-max (2 yr 4 mo 1 d – 6 yr)	Prisión mayor
5,001 – 19,999	Arresto mayor max-Prisión correccional min	Prisión correccional med-max
501 – 5,000	Arresto mayor med-max (2 mo 1 d – 6 mo)	Prisión correccional min-med
≤ 500	Arresto menor (1 d – 30 d) or fine up to value	Arresto mayor

Accessory penalties: civil indemnity (art. 104 RPC), perpetual special disqualification when the principal penalty is > Prisión correccional.

2.3 Special Laws

Law	Relevance
PD 1612 (Anti-Fencing)	Anyone who “acquires, possesses, keeps, or sells” items they know or should know are stolen faces penalties equal to or one degree lower than those for the underlying theft.
RA 10175 (Cybercrime)	Online exfiltration of proprietary data, trade secrets, or customer lists is punished one degree higher than the corresponding offense in the RPC.
RA 10883 (Carnapping) and RA 11235 (Motorcycle Theft)	Apply if company vehicles are taken.

2.4 Criminal Procedure

Complaint-Affidavit filed with the Office of the City/Provincial Prosecutor.
Inquest or preliminary investigation; resolution determines if probable cause exists.
Information filed; court issues warrant of arrest (except for inquest-detained offender).
Bail: computed via DOJ circular schedule (e.g., ₱40,000-₱200,000 for qualified theft of P1 M).
Arraignment, pre-trial, trial; proof beyond reasonable doubt required.
Judgment; civil liability may be enforced within the criminal case (Art. 100 RPC).

Prescription:

Qualified theft punishable by reclusion perpetua prescribes in 20 years (Art. 90 RPC).
Lower penalties prescribe in 10, 8, 5, or 1 year, depending on gravity.

3. Civil Liability

Even after acquittal (unless the act is declared non-existent), the offender may be ordered to:

Restitute or return the specific property.
Pay the value if restitution impossible (Civil Code art. 1189).
Pay moral and exemplary damages for willful act (arts. 2229-2232).
Interest at 6 % per annum from demand until full payment (Nacar v. Gallery Frames, G.R. 189871, 13 Aug 2013).

The company may file an independent civil action (Rule 111, Rules of Crim. Proc.) or intervene in the criminal case.

4. Labor-Law Consequences

4.1 Just-Cause Termination

Under Art. 297 (a) of the Labor Code, “serious misconduct” or “fraud or willful breach of trust” justifies dismissal. Theft—proved even by substantial evidence—falls squarely under this. The employer must observe:

First notice: Written Notice to Explain (charge, facts, rule violated).
Opportunity to be heard: Written reply and/or conference.
Second notice: Decision stating findings and grounds for dismissal.

Failing to follow the two-notice rule renders the dismissal procedurally flawed and exposes the company to nominal damages (₱30,000 in Agabon v. NLRC, G.R. 158693, 17 Nov 2004), even if the dismissal is substantively valid.

4.2 Standard of Proof

Substantial evidence (that a reasonable mind may accept): sufficient for dismissal (Nissan Motor Phils. v. Angelo, G.R. 164115, 17 Jul 2009).
Guilt beyond reasonable doubt: required only for criminal conviction; acquittal does not automatically negate dismissal (St. Luke’s Medical Center v. Notario, G.R. 175241, 7 Dec 2011).

4.3 Forfeiture & Other Administrative Sanctions

Unpaid benefits or bonuses may be withheld if the plan conditions it on good standing.
Government employees may face administrative cases for dishonesty (RA 6713) with penalties up to dismissal and perpetual disqualification.
Company policy may impose lesser penalties (suspension) for small-value pilferage, but criminal referral remains discretionary.

5. Specialized Scenarios

Scenario	Applicable Rule(s)	Note
Intangible property (source code, databases)	RA 10175 §4(b)(1), IP Code (RA 8293) §§ 216-217	Theft may be re-characterized as data interference or copyright infringement.
Low-value “petty pilferage” (e.g., office supplies)	Still qualifies as theft; penalty indexed to value	Employers usually choose admin action rather than criminal filing.
Theft by a Director/Officer	Art. 302 RPC (theft by manager), Corp. Code §31 (fiduciary duties)	May expose officer to solidary civil liability with the corporation.
Loss involving company vehicles	Carnapping Act (RA 10883)	Raises penalty to reclusion perpetua to death (now reclusion perpetua) if carnapping results in homicide.
Subsequent sale or possession of stolen items	PD 1612 (Fencing)	Presumption of fencing if caught within 90 days from theft.

6. Company-Side Playbook

Immediate containment: isolate scene, secure CCTV, audit logs.
Evidence preservation: issue hold orders, image devices (for digital theft), seal inventories.
Internal fact-finding: interview witnesses, obtain sworn statements.
Parallel actions:
- Start administrative case (two-notice rule).
- Prepare criminal complaint if warranted (coordinate with counsel).
Recovery strategies:
- Writ of replevin or attachment to seize property pending suit.
- Restitution agreements (amicable settlement) when value is low and trust can be rebuilt.
Post-incident review: strengthen controls, revise policies, conduct ethics training.

7. Defenses & Mitigating Factors

Defense	How Raised	Effect
Lack of intent to gain (animus lucrandi)	Evidence of mistake or intent to return	Negates theft; may still incur administrative liability
Ownership or co-ownership	Show lawful title	No theft if property belongs to accused
Consent of owner	Written authorization, company policy	Consent must be prior and clear
Value below ₱5,000 + restitution before arraignment	Art. 332 RPC (exempting relatives, not co-employees) ≠ applicable	May allow plea to light offense (arresto menor) or probation
Plea-bargain / plea to theft (for estafa)	Prosecutor & court approval	Lower penalty (e.g., prision correccional instead of prision mayor)

8. Prescription & Probation

Prescription: Starts from discovery of the theft (Art. 91 RPC).
Probation: Available if principal penalty ≦ prision correccional max (6 yr) and accused does not appeal the conviction (Probation Law, PD 968). Not available for those sentenced to reclusion temporal-perpetua.

9. Illustrative Jurisprudence

Case	G.R. No.	Ruling
People v. Uyan	179058 (10 Jun 2013)	Cashier who took ₱4.9 M from employer convicted of qualified theft; penalty reclusion perpetua.
People v. Bonifacio	238721 (17 Mar 2021)	Warehouseman convicted where CCTV & inventory logs sufficed; grave abuse of confidence established.
Firestone Tire v. Lariosa	70479 (30 Jun 1986)	Dismissal for theft upheld despite later criminal acquittal; employer need only substantial evidence.
Nissan Motor Phils. v. Angelo	164115 (17 Jul 2009)	Theft of car parts; dismissal sustained; non-payment of separation pay proper.
St. Luke’s Medical Center v. Notario	175241 (7 Dec 2011)	Employee acquitted criminally but dismissal affirmed; standards of proof differ.

10. Compliance & Preventive Measures

Robust asset-tracking (ERP, serialised inventory).
Segregation of duties (no single employee should control custody, record-keeping, and authorization).
Random audits & “mystery shopper” checks for retail environments.
Access controls & encryption for digital assets.
Clear disciplinary code integrated into employment contracts and employee handbook.
Whistle-blower hotlines and anti-retaliation safeguards.

Conclusion

In the Philippines, theft of company property is multi-faceted: it can end careers, generate heavy civil liability, and send offenders to prison for up to reclusion perpetua. Employers must meticulously observe both criminal procedures and labor-law due process, while employees should be aware that even “petty” pilferage can justify dismissal and criminal charges. A pro-active compliance culture—backed by clear policies, periodic audits, and swift enforcement—is the best defense against internal and external theft.