What is the best approach to handling an employee who is stealing

I have two employees who are stealing. I have video surveillance of them both working together stealing on the job. They do not ring in customer purchases but rather figure up the amount on a calculator then open the drawer using the No Sale key to give change. Ive pulled the register tape during their shifts and counted no less than 35 canceled purchases and 40 no sale drawer openings. Theyve also just pocketed money. Its not a matter of having evidence. I have them cold. (BTW, the total amount of their theft is about $750.00). My question is this: Do I confront them about this situation or should I contact the police first? Should i just terminate them, terminate them and give them an opportunity to pay the money back or just call the police? I know I shouldnt really feel badly about it but I know that they are both single mothers and jail time would hurt their children.
      Answer1:Fire them and take the money out of their paychecks.
      Answer2:I would talk to them first, one by one. Find out the reasons for their theft. They might have done it out of trying to feed their families. Find out first why they would do this sort of thing. Then after you do this, it is up to you to make a sound judgment. I wouldnt call the police, but it would be totally fair to fire them, unless they have a good reason. Work out a payment schedule where they can pay the money back. Tell them you forgive them, but they cannot be stealing things from their job like they have been. May God be with you in making a sound judgment. Good luck, and if you need anymore advice, contact me at themark08@yahoo.com. May God Bless You.
      Answer3:talk to them,happens agian,fired
      Answer4:Fire them and prosecute them and ask the courts for compensation for the loss.
      Answer5:A thief is a thief, and its safe to assume they instill the same moral values on there children, Myself Id file a police report and hope that the justice system HA HA. will at least try to get restitution for my losses, lifes lessons can be hard learned even for the innocent.
      Answer6:search: Business Empire MagazineIt wont let me put a link but they have a lot of useful information related to business that should answer your questions.

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