Around 80% of corporate fraud involves an employee, according to research by Glovers Solicitors.

In a white paper entitled “The Enemy Within”, the firm advises that prevention is better than cure, and that fraud buster clauses should be in employment contract.

Glovers says that more than £40m is lost every day to fraud in the UK, 90% of fraudulent employees have been with their employer for more than a year, and 20% for more than a decade.

Tony Bourne, senior partner with Glovers, says: “The employment contract can be used as a deterrent and should have ‘fraud buster’ clauses which should be communicated to employees at the beginning of their contract. This should include clauses compelling employees to be involved in fraud awareness training and a rigorous monitoring policy covering internet access, e-mails, desk searches and even briefcase searches. The contract should make clear that fraud will be pursued rigorously to recover all sums stolen and that instant termination will follow.”

Bourne adds that employers should also ensure that there is a contractual claw back provision which covers all monies owed including notice monies, holiday pay, and bonuses and that you can contractually suspend the employee without pay, during any fraud investigation.