Time Theft in Canada: What It Means, Examples & Employee Rights

Time theft happens when an employee is paid for time they didn’t actually spend working. While it might sound minor, time theft at work can seriously affect your job — and, in some cases, lead to termination.

This guide explains what time theft means in Canada, how employers handle it, whether it’s considered a crime, and what your legal rights are if you’re accused of it.

What Is Time Theft?

Time theft refers to any situation where an employee doesn’t perform work duties during hours they’re being paid for.

In simple terms, it’s being “on the clock” without actually working.

Examples include:

• Logging hours that weren’t worked
• Excessive personal phone use or social media during work time
• Taking extended breaks or leaving early without approval
• Using company time for personal errands or side jobs
• “Buddy punching” — clocking in for a co-worker

Time theft can occur in the office, on a job site, or when working remotely.

Is Time Theft a Crime in Canada?

No. Time theft isn’t a criminal offence in Canada.

However, it can still lead to disciplinary action or dismissal. Employers may view it as a serious breach of trust, especially if the behaviour is repeated or intentional.

Depending on the facts, a company could argue that time theft is “just cause” for termination, which means you might not receive severance pay. That said, proving just cause is extremely difficult — and most employees are still owed compensation.

Time Theft at Work: Common Examples

With hybrid and remote work now common, employers are increasingly using software to track productivity.

The most well-known case of time theft in BC involved a remote accountant who was ordered to repay over $2,600 after her employer’s tracking software showed hours billed but not worked (Global BC).

Typical examples of time theft at work include:

• Submitting inaccurate timesheets
• Overreporting billable hours
• Failing to complete assigned tasks while “clocked in”
• Watching videos, gaming, or running personal errands during work hours

Trust remains a cornerstone of every employment relationship. If that trust breaks down, it can justify discipline — but not always termination for cause.

Can You Be Fired for Time Theft in Canada?

Yes, but not automatically “for cause.”

In Canada, an employer can dismiss a non-unionized employee without cause for almost any reason, as long as they provide full severance pay — up to 24 months’ pay — and the decision isn’t discriminatory.

Only in rare, extreme cases will time theft justify a termination for cause — meaning no severance or Employment Insurance (EI) benefits. To succeed, the employer must prove:

• Clear evidence of repeated time theft or dishonesty
• Prior warnings or progressive discipline
• That no lesser punishment was appropriate

If these steps weren’t followed, you may still be entitled to significant severance compensation.

Employee Rights After Being Accused of Time Theft

If you’re accused of time theft, don’t panic — and don’t resign. You have legal protections under Canadian employment law.

You should:

1. Ask for written details or proof of the allegation.
2. Avoid admitting fault until you’ve received legal advice
3. Keep copies of all related emails, time records, and communications.
4. Contact an employment lawyer before responding or signing anything.

In some situations, an employer’s reaction to alleged time theft — such as demoting you, cutting your hours, or forcing you to return to the office — could amount to constructive dismissal. That means you may be able to resign with full severance pay.

What Is a Time Theft Policy?

A time theft policy sets expectations for attendance, honesty, and productivity. It may also describe how the employer monitors work hours and handles violations.

While these policies can include electronic monitoring (such as tracking software or activity logs), companies must still follow privacy laws and provincial employment standards. In Ontario, for example, employers must disclose that they are electronically monitoring employees — but they don’t need consent to do so on company devices.

• Related Reading: Electronic Monitoring in Ontario

Employer Time Theft: When the Tables Turn

Time theft isn’t always one-sided. Some employers can also engage in “reverse time theft” — for instance, expecting staff to work unpaid overtime or skipping breaks.

These actions may violate employment standards and could entitle you to back pay or overtime compensation.

Time Theft in Ontario and BC

While time theft laws are similar nationwide, provinces handle workplace disputes differently:

• Ontario: Employers must disclose electronic monitoring policies but can still discipline staff for time theft.
• British Columbia: The province’s Civil Resolution Tribunal (CRT) handles some disputes, such as the 2023 case ordering an employee to repay $2,600 for unworked hours.

In all provinces, employers must act fairly and consistently when investigating time theft allegations.

What to Do If You’re Fired for Time Theft

If you’re fired for time theft, don’t assume your employer is right. Even if they claim “just cause,” most employees are still owed severance.

Before accepting any settlement or signing a release:

• Speak with an employment lawyer at Samfiru Tumarkin LLP to review your termination letter
• Find out whether your employer had legal grounds to fire you
• Ensure you’re receiving the full compensation you deserve