Time theft is when an employee is paid for time they did not actually work or knowingly records work time inaccurately.
Employers can discipline employees for time theft, and serious or repeated misconduct can lead to termination. But an accusation of time theft does not automatically give an employer just cause to fire you without notice or severance.
Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia respond to misconduct allegations, challenge improper terminations for cause and pursue the compensation they are owed.
⚠️ Accused of time theft?
Do not resign, admit misconduct or sign a termination document before understanding the allegation and your severance rights.
Reviewed by: Lior Samfiru, Employment Lawyer and National Co-Managing Partner
On This Page:
- 1. What Is Time Theft?
- 2. Examples
- 3. Is Time Theft a Crime?
- 4. Can You Be Fired?
- 5. Severance Rights
- 6. Wrongly Accused?
- 7. Monitoring & Policies
- 8. Common Questions
What Is Time Theft?
Time theft happens when an employee receives pay for time they did not work or knowingly misrepresents their working hours.
It can involve inaccurate time records, extended breaks, leaving early, arriving late or recording work that was not actually performed.
Not every mistake or disagreement about working time is time theft. Intent, workplace rules, past practice and the employee’s explanation all matter.
💡 A payroll or timekeeping mistake is not automatically misconduct.
An employer should distinguish between an honest error and deliberate dishonesty before deciding how serious the situation is.
Examples of Time Theft at Work
Common allegations include:
- Clocking in before actually starting work
- Clocking out after work has already ended
- Taking longer unpaid breaks than allowed
- Leaving work early without recording it
- Having another employee clock in or out for you
- Recording hours for work that was not performed
- Falsifying timesheets or attendance records
Whether any of these situations amount to serious misconduct depends on the facts.
Is taking a long break time theft?
It can be if the employee knowingly records the time as worked when it was not. A one-time mistake is different from repeatedly falsifying time records.
Is personal internet use time theft?
Not automatically. Many workplaces allow some incidental personal use. The issue becomes more serious when personal activity is excessive, hidden or clearly violates workplace rules.
Is Time Theft a Crime in Canada?
Workplace time theft is usually dealt with as an employment issue.
An employer may investigate, discipline or terminate an employee based on the conduct.
More serious allegations involving deliberate fraud, falsified records or theft can raise separate legal issues depending on what happened. Those situations should be assessed based on the specific facts.
💡 An employer calling something “theft” does not decide the legal outcome.
The actual conduct, evidence and surrounding circumstances matter.
Can You Be Fired for Time Theft?
Yes. Time theft can lead to discipline or termination.
But being accused of time theft does not automatically give your employer just cause to fire you without severance.
The employer should consider:
- How serious the conduct was
- Whether it was deliberate
- How often it happened
- Whether you were previously warned
- Your length of service and disciplinary history
- Whether the workplace policy was clear
- Whether the employer treated similar conduct consistently
A single minor incident is very different from repeated falsification of timesheets.
Read our guide to termination for cause.
Do You Get Severance If You Are Fired for Time Theft?
You can. If your employer can’t establish just cause, you may still be entitled to notice or compensation when your employment ends.
For employees entitled to common-law notice, severance can depend on factors such as age, length of service, position and the availability of comparable work.
Compensation can also include bonuses, commissions and benefits, not just base salary. It can reach as high as 24 months’ pay.
Read our guide to severance pay in Canada.
⚠️ Fired for cause over time theft?
Do not assume you are owed nothing. Have the allegation and termination package reviewed before signing a release or accepting the employer’s position.
What If You Are Wrongly Accused of Time Theft?
Ask the employer to explain exactly what it says happened and what evidence it is relying on.
Then document your own version while the events are still fresh.
Keep relevant records such as:
- Timesheets
- Schedules
- Emails or messages
- Clock-in and clock-out records
- Workplace policies
- Performance or disciplinary documents
Do not alter records, delete evidence or pressure coworkers to support your account.
Should you sign a written warning?
Check what the signature means. A signature confirming receipt is different from agreeing that the allegation is true.
If the wording says you admit misconduct, get advice before signing.
What if the employer launches an investigation?
Respond truthfully and professionally. Correct inaccurate facts and explain relevant context.
Read our guide to workplace investigations.
Can Employers Monitor Employees for Time Theft?
Yes. Employers can use timekeeping and monitoring systems to track attendance and work activity.
That can include:
- Electronic time clocks
- Computer activity logs
- Swipe-card records
- GPS or location data
- Security cameras
- Productivity-monitoring software
Privacy and transparency rules can apply depending on the province and workplace.
In Ontario, employers with 25 or more employees must have a written electronic-monitoring policy that explains whether employees are monitored, how monitoring occurs and how the information may be used.
If monitoring leads to discipline or termination, the employer should still have reliable evidence and assess the conduct fairly.
Time Theft at Work: FAQs
What is considered time theft?
Time theft involves knowingly receiving pay for time not worked or deliberately recording work time inaccurately.
Can you be fired for one incident of time theft?
Yes, but one incident does not automatically justify termination for cause. The seriousness of the conduct and the surrounding circumstances matter.
Can an employer fire you for clocking in early?
Yes, if the conduct violates workplace rules or involves dishonest time reporting. Whether the employer can fire you without severance depends on the facts.
Can you be fired for taking long breaks?
Yes. Repeatedly taking unauthorized breaks can lead to discipline. Falsifying the time records makes the situation more serious.
Can an employer make you repay wages for alleged time theft?
Employers cannot simply make any payroll deduction they want. Wage-deduction rules vary by province and should be reviewed before money is withheld from your pay.
Can time theft justify termination for cause?
It can. Deliberate and serious dishonesty can support a cause allegation, especially when it is repeated or involves falsified records.
What if everyone takes long breaks?
Workplace culture can matter. If management consistently allowed the conduct, that can affect how fairly the employer can suddenly rely on it as grounds for serious discipline.
What if you’re unionized?
Your collective agreement governs discipline and termination disputes. Contact your union about the allegation and any grievance deadlines. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.
What Is Quiet Vacationing?
Quiet vacationing describes employees secretly taking time away from work while making their employer believe they’re working, often in remote or hybrid jobs.
If an employee deliberately misrepresents their working hours or availability, the employer may consider it misconduct or time theft.
Accused of Time Theft at Work?
An accusation of time theft can lead to discipline or termination, but it does not automatically eliminate your severance rights.
If your employer says you were dishonest, fired you for cause or asked you to sign a warning or release, get advice before agreeing to anything.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia respond to misconduct allegations and pursue the compensation they are owed.
Before you sign, always check first.
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