What is time theft?
Time theft refers to situations where an employee is compensated for work they haven’t actually completed. It’s not just about skipping shifts; it includes any method of being paid for non-productive work. Examples include arriving late or leaving early, taking extended breaks, or falsifying time sheets.
Time theft at work differs from absenteeism, where an employee is simply not present. It can include subtle behaviours like working inefficiently or checking social media during work hours. While absenteeism is easier to track, time that goes unaccounted for often goes unnoticed, silently affecting business performance and morale. Understanding these nuances is key to identifying and addressing the problem effectively.
What are the different types of time theft?
Unaccounted for time can take many forms, some of which can be harder to spot. Let’s look at some examples of how misuse of working hours occurs, and how it can impact productivity and trust.
Arriving late or leaving early
One of the simplest forms of this is employees arriving late or leaving early. Even small variations in start and end times can add up over weeks or months, resulting in significant lost hours. This behaviour often goes unchallenged in workplaces without strict time-tracking policies but, over time, it can disrupt team schedules and reduce overall efficiency.
Taking unscheduled or extended breaks
Taking unscheduled or extended breaks is another common form of unaccounted for time. Whether it’s an extra-long lunch hour or frequent coffee breaks, these lost minutes accumulate and can seriously impact output. Companies that fail to monitor break patterns often find that workloads pile up, causing stress for other employees and reducing overall productivity.
Falsifying time sheets
Falsifying time sheets is a deliberate form of time theft at work, where employees claim hours that they haven’t actually worked. This can include inflating hours, inaccurately reporting work as completed, or claiming overtime pay that they’re not entitled to. Keeping track of employee hours is important to not only ensure accurate pay, but to better manage resources and workloads.
Buddy punching
Buddy punching refers to when employees clock in or out for colleagues who aren’t present, enabling them to be paid for work that never took place. This type is more common in workplaces without secure time-tracking systems, making it easier for dishonest behaviour to go unnoticed and costing businesses significant amounts over time.
Doing personal tasks during work hours
Handling personal tasks during work hours, such as shopping online, attending appointments or checking social media, is also classed as unaccounted for time. While it might be just a few minutes here and there, this can add up over time. Additionally, while employees may be physically present, these types of behaviours can divide their attention and reduce their output.
Deliberately working slowly
Some employees deliberately work slowly to extend tasks or claim unapproved overtime, which is a subtle but impactful form of this. This can inflate labour costs and frustrate colleagues who are putting in genuine effort. In some cases, this type of time theft can equate to insubordination at work, and may require formal intervention or disciplinary action.
Taking advantage of remote working
Remote work offers flexibility, but it can also create opportunities for time theft, as highlighted by the growing trend of productivity paranoia. Employees may take advantage of the lack of oversight by taking longer breaks, engaging in personal tasks, or stepping away from their workstation without notice. This can reduce overall productivity and disrupt team trust.
Why do employees engage?
Understanding why employees engage in taking unaccounted for time is essential to preventing it. There are many different factors that contribute to this behaviour, which are often rooted in workplace culture or individual circumstances. Let’s explore some common causes of time theft at work.
Low morale
Low morale is a major driver of unaccounted for time. Employees who feel disengaged, unchallenged or undervalued are more likely to divert time from their work. It can also happen when staff feel disconnected from the company’s goals or believe that their contributions aren’t recognised, creating a sense that their time could be spent elsewhere without consequence.
Perceived injustice
When employees perceive unfairness, such as unequal pay or poor relationships with managers, they may try to even the balance themselves. Seeing colleagues avoid consequences while being paid for minimal effort can encourage similar behaviours, and can even erode the strongest work ethic over time.
Stress and burnout
High levels of stress and burnout can push employees toward this as a form of escape or self-preservation. Fatigue reduces focus and efficiency, leading to unproductive hours and time spent fixing mistakes. It can also occur when employees feel overwhelmed and unable to keep up with heavy workloads, making it tempting to step away from tasks for a mental break.
Lack of training
Sometimes this occurs simply because employees don’t know what’s expected of them or how to track their work. Lack of a proper onboarding process or insufficient training on systems can lead to unintentional time misuse that accumulates over weeks, subtly affecting team productivity and workflow.
What are the warning signs of time theft at work?
Recognising patterns and changes in behaviour helps to address workforce issues before they escalate. Let’s explore key warning signs…
Declining productivity or missed deadlines
A sudden drop in output or frequent missed deadlines often signals an employee taking unaccounted for time. Tasks that used to be completed efficiently may start dragging on, and the overall pace of work can slow. This pattern can signal that employees aren’t fully dedicating their paid hours to productive tasks.
Inconsistent working hours or attendance patterns
Irregular start times, leaving early, or unexpected absences can be a warning sign of this. Employees might log hours without actually being present, or vary their schedules in ways that disrupt workflows. Over time, these patterns create gaps in productivity and can affect the reliability of the wider team.
Excessive use of personal devices
Frequent personal phone calls, social media browsing, or non-work-related computer use during paid hours can indicate this. While occasional personal use is normal, persistent activity during productive hours can reduce focus and contribute to them being paid for non-work-related tasks, impacting overall efficiency.
Are there any laws covering time theft in the UK?
Time theft in the UK isn’t explicitly covered by specific legislation, but employers do have legal tools to address it. Contracts, employment law and disciplinary procedures provide frameworks to ensure that employees are held accountable while protecting the business from financial and operational losses.
Employers can enforce policies, monitor working hours and issue employee time theft punishments such as warnings, pay deductions or even dismissal where appropriate. Implementing clear guidelines helps to ensure that any disciplinary action is fair, lawful and proportionate, reducing the risk of disputes.
How to prevent time theft at work
Preventing misuse of working hours requires a mix of clear policies, effective monitoring, and a supportive culture. Let’s explore some practical steps that help to reduce opportunities for time misuse while maintaining employee trust.
Set clear expectations for work hours and breaks
Creating a formal policy outlining expected work hours and permitted breaks reduces ambiguity and sets clear expectations. Including a specific time policy and social media policy ensures that employees know what’s acceptable and reduces the temptation to neglect their duties.
Monitor productivity without micromanaging
Tracking output and performance is essential, but micromanaging tends to damage morale and engagement, which can also lead to productivity issues. By focusing on results rather than constant observation, managers can prevent misuse of working hours without being overbearing.
Encourage accountability through regular check-ins
Frequent project updates and one-on-one check-ins encourage accountability and help to minimise unaccounted for time. Performance appraisals are important for setting clear expectations and reviewing progress, ensuring that employees remain engaged and responsible for their time.
Foster a positive work culture that motivates employees
Employees are less likely to engage in this when they feel valued and inspired. A supportive and motivational environment based on recognition and growth promotes engagement, satisfaction and higher productivity.
Proactively manage stress in the workplace
Unchecked workplace stress can reduce focus and motivation, increasing the risk of time being misused. When pressure feels constant, employees may disengage or withdraw from tasks. Our Stress to Success webinar explores how to spot the early warning signs, and how to build a proactive wellbeing strategy.
Try to meet your employees halfway
Flexibility and fair compensation reduce the temptation for this. Incentives like better pay or enhanced benefits can increase engagement, while wellbeing strategies like moving to a four-day work week can offer improved work-life balance and reduce stress.
Discipline employees who are stealing time
Addressing deliberate misuse of work hours deters repeat behaviour and discourages others from following suit. Implementing consistent employee time theft punishment through formal disciplinary procedures ensures fairness and demonstrates that time misuse won’t be tolerated.
Implement robust time tracking solutions
Reliable time and attendance software helps to prevent misuse of working hours by accurately recording hours worked, tasks completed, and breaks taken. Transparent tracking protects both employers and employees, creating a culture of accountability.
Track your employees’ hours accurately with PeopleHR
Addressing misuse of work hours is crucial for maintaining productivity, fairness and team morale. Accurate tracking ensures that employees are paid for the hours they actually work, and empowers businesses to spot trends before they become problems.
PeopleHR’s time and attendance software helps to reduce time theft at work by simplifying monitoring, supporting accountability, and providing insights to improve operations. By integrating directly with your payroll software, it also helps to streamline wage calculations, reduce errors, and save time for finance teams.
Book a demo for a hands-on experience of any of our software’s features, or contact our team directly for more personalised support.
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