13/11/2017
Workplace fraud, by its nature, is a secretive act. It is a type of dishonesty that is normally committed in such a way that its very existence is concealed. Collins Concise Dictionary defines fraud as “deliberate deception, trickery or cheating intended to gain an advantage”. This means that those frauds for which employees have been caught are likely to be only the tip of the iceberg. As shown in the Rope constructions case reported later in this article, even apparent frauds discovered by employers may go unpunished because of lack of proof that the accused was in fact the fraudster.
In order to prove fraud the employer must show that the accused employee was the one who committed the act and that he/she did so for gain. However, such gain would not have to be confined to direct financial advantage. The fraud could be committed for the advantage of a friend or family member or could be a means towards gaining the perpetrator a job. For example, claiming false qualifications for a job would be fraudulent in the sense that the job applicant would be gaining employment based on a lie.
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South African Labour Law for Employers and Employees