World Athletics Sacks Staff Following £1.3m Employee Theft

World Athletics has sacked members of its staff after discovering employee theft totalling a staggering £1.3 million. While theft by an employee rarely reaches such figures, this astonishing case serves as a poignant reminder of the devastating consequences of fraudulent actions.

In our latest article, we examine precisely what happened at World Athletics. We discuss the relevant UK employment laws and outline the steps employees can take if they’re accused of corporate theft.

If you have faced such accusations or been dismissed and believe it was unfair, contact us without hesitation. Redmans Solicitors are employment experts, and following a brief consultation, we can assess your case, provide answers, and discuss your possible next steps. If your case is eligible, we can also guide you through the legal process to seek justice.

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The World Athletics Employee Theft Case: What Happened

Formerly known as the International Association of Athletics Federations (IAAF), World Athletics is the international governing body for athletics. It sets the rules, standardises the equipment, and manages the world records for the sport.

Unfortunately, after appointing a new financial team, an annual audit process was undertaken, revealing that £1.3 million had been stolen. The “systematic” corporate theft had occurred over several years. Following a subsequent internal investigation, an employee and a consultant were sacked, with a third individual, who was confirmed to be part of the theft, having already left the organisation.

World Athletics reported the matter to the relevant legal authorities to initiate criminal proceedings. It also implemented enhanced financial controls to prevent future employment theft.

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Sebastian Coe, President of World Athletics, acknowledged that addressing such misconduct was “uncomfortable.” Nonetheless, he emphasised the organisation’s commitment to transparency, strong governance, and decisive action. He said, “We are determined to recover whatever monies we are able, using the full force of the law…This is uncomfortable, but it is important that we do the right thing.”

While cases of this magnitude are uncommon, the impact of employee theft, regardless of the scale, can be devastating. Previous UK cases have seen businesses forced into insolvency and mass layoffs of staff. For this reason, fraudulent actions at work are treated extremely seriously by both employers and the legal system.

When Stealing Can Lead to Dismissal

Under UK employment law, employee theft is typically considered gross misconduct, which may warrant summary dismissal. Importantly, although dismissal may be justified, employers must undertake a fair process before making their decision.

Among other things, this includes conducting a reasonable, impartial investigation, complying with the Acas Code of Practice, and allowing the alleged party an opportunity to explain themselves. Should an employer fail to adhere to its obligations, a dismissal could be unfair, even if its reasoning is justified.

What Counts as Stealing From Work?

Notably, theft by an employee doesn’t just take the form of stealing cash or high-value items. It can include taking office supplies home without authorisation, exploiting discount schemes, embezzling company funds, and misusing intangible assets such as business secrets.

Even seemingly minor acts of employment theft can carry serious consequences, particularly if they breach trust or impact the organisation’s operations. Employers are therefore advised to clearly communicate expectations and ensure all staff understand the potential ramifications of dishonest behaviour.

Employment Rights When Accused of Employee Theft

From an individual’s perspective, facing accusations of employee theft is often distressing and risks reputational damage. If they are innocent, though, there should be nothing to fear. Under UK law, among other things, those accused have the right to:

• A fair investigation – Where judgment must be avoided before a thorough and impartial investigation has taken place
• Know the case against them – Being provided the specific allegations, evidence being relied upon, and potential consequences should the allegations be proven
• Be accompanied – Either by a colleague or a trade union representative
• Confidentiality – Employers should avoid disclosing the allegations unnecessarily, as doing so can allow unwarranted rumours to arise
• Not be unfairly dismissed – Employees with at least two years’ continuous service are protected against unfair dismissal, caused by an unfair reason or process

These are just a few of the rights that protect employees in the workplace. If an individual wants a comprehensive understanding of their rights or has any questions, it may be wise to seek specialist legal advice.

Employment Rights Breached? Here’s What You Can Do

If an employee has faced unfair treatment or dismissal due to unfounded allegations of fraudulent actions, there are various steps they can take to seek a remedy. Before pursuing any of these avenues, though, it’s recommended that they gather as much evidence as possible to support their case. Such evidence can include recorded correspondence (like emails, text messages, or letters), CCTV footage, or witness information for future statements.

Once evidence has been obtained, the next step is to consider internal avenues. Informal chats with senior leadership or HR are often undertaken; however, if this approach is inappropriate or fails to provide a satisfactory outcome, raising a formal grievance through the employer’s procedure is also available.

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In parallel to this, employees are usually advised to initiate early conciliation through Acas. This free and independent process is typically required before most employment tribunal claims can be brought, and can prevent the matter from escalating to more formal action. What’s more, strict time limits apply for bringing a claim, and taking this measure stops the clock on doing so, allowing more time to resolve the dispute informally.

As a last resort, however, a claim can be pursued in the employment tribunal. As mentioned above, strict time limits in addition to specific eligibility criteria must be adhered to, but compensation, among other remedies, can be awarded if the claim is successful.

Get Help with Redmans

If you believe you’ve been unfairly accused of employee theft or dismissed as a result, contact Redmans Solicitors now. As employment specialists, we can assess your circumstances, answer your questions and provide expert advice. For those eligible, we can also guide them through the claims process.

Learn more about how we can help you today by:

• Giving us a call on 020 3397 3603
• Requesting a callback via our online form