How a US$7 theft cost an employee his US$84,000 pension—court says it was justified

Overseas case involved Japanese bus driver caught on security camera

How a US$7 theft cost an employee his US$84,000 pension—court says it was justified

How to deal with misbehaving employees is a perennial concern for plan sponsors, but one Japanese employer took it to the extreme.  

A Kyoto City bus driver with 29 years of service lost his entire retirement package—worth more than US$84,000—after being dismissed for mishandling a fare of US$7, according to The Manila Times.  

The man, whose name was not disclosed, was caught on the vehicle’s security camera in 2022 accepting the fare in cash and failing to report it properly.  

According to the ruling, a group of five passengers had paid 1,150 yen in total.  

The driver instructed them to drop 150 yen in coins into the fare box, then accepted the 1,000-yen note by hand without logging the payment.  

He later denied any wrongdoing during a meeting with his superior.   

Although he initially won a lower court decision on grounds that the punishment was excessive, the Supreme Court reversed that decision and ruled in favour of the city.  

It found the conduct could undermine public trust in the transportation system and the city’s operations. The driver had also received previous reprimands, including for using an electronic cigarette while on duty—albeit when no passengers were aboard.  

Kyoto City welcomed the court’s decision.  

“Each one of the bus drivers works alone and handles public money. We took it very seriously that embezzlement related to this area of our work took place,” said Shinichi Hirai of Kyoto’s public transport bureau, in a statement to Agence France-Presse.  

“If our strict measures were not accepted, then our organization could become careless and it could result in eroding the public's trust,” said Hirai.  

The case has renewed questions among employers globally, including plan sponsors and HR professionals, over where the line is drawn between minor infractions and just-cause dismissal—particularly when dealing with long-tenured employees approaching retirement.  

In South Africa, a baker with 31 years of service was dismissed for allegedly using a spoonful of company sugar in his tea. The employer cited CCTV footage and claimed the sugar was taken from bakery stock, though the employee denied wrongdoing.  

The case underscored the importance of solid evidence and thorough investigation when addressing employee misconduct.  

In the United States, a former Chipotle manager was awarded approximately US$8m in a wrongful termination lawsuit after being accused of stealing US$636.  

Chipotle claimed to have video evidence of the theft, but the footage was overwritten before the trial. 

The court found that the termination may have been retaliatory, related to the employee's previous workers’ compensation claims and pregnancies.   

In the United Kingdom, a cleaner employed by outsourcing firm Total Clean was fired for allegedly stealing a £1.50 tuna sandwich. The employee, Gabriela Rodriguez, claimed the sandwich was from leftover food typically made available to staff.  

Her dismissal sparked public protests and highlighted concerns about the treatment of low-paid and migrant workers.   

These cases illustrate the complexities employers face when addressing minor employee infractions, especially concerning long-serving staff. They highlight the need for consistent disciplinary policies, thorough investigations, and consideration of the broader implications of termination decisions.