What does the term "employee theft" encompass?

The term "employee theft" specifically refers to the act of stealing or embezzling funds or property by an individual who is employed by the organization. This encompasses various forms of dishonest behavior where an employee misappropriates assets, funds, or resources for personal gain. This definition effectively captures both direct theft of physical items as well as the fraudulent taking of money or valuables through manipulation or deceit.

In contrast, options that mention third parties, damages caused by employees, or loss due to negligence do not fit within the definition of theft by an employee. Employee negligence typically refers to carelessness or lack of proper conduct that results in damage or loss, rather than intentional wrongdoing, while damages caused by employees would involve actions that may not necessarily point to theft but rather to operational failures or accidents. Similarly, third-party theft does not involve employees at all and would fall under different categories of crime that don't relate to employee conduct within the workplace.