Any theft by an employee falls under this section.

This section specifically requires that the property was entrusted to the person because of their role as a clerk or servant, not simply that they happened to be an employee who stole something unrelated to their duties.

Indian Penal Code, 1860

Section 408

repealed

Criminal breach of trust by clerk or servant

Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.§

Why this exists

Employers routinely give clerks and servants access to cash, goods, or records as part of their duties. This section imposes a stricter punishment than the basic offence because such employees are given trust specifically due to their employment relationship, and betraying it can seriously harm an employer's business and the broader trust needed in employment relationships. Under the Bharatiya Nyaya Sanhita, 2023, this corresponds to Section 316(3).

How courts read it

Courts look for proof that the accused held the position of clerk or servant and that the entrustment of property arose specifically from that employment role, which justifies the enhanced punishment compared to the general offence under Section 406.

Common misconceptions

Myth: Any theft by an employee falls under this section.
Fact: This section specifically requires that the property was entrusted to the person because of their role as a clerk or servant, not simply that they happened to be an employee who stole something unrelated to their duties.