Hacker News Reader

If it happens as frequently as claimed? I'd call it total managerial incompetence. Call metrics are well defined and it is easy to see if someone is doing no work. If the line managers are slacking off like that, what does that say for their management (and so on and so on)?

Breach of contract, or at a stretch maybe fraud if they were actively misleading someone. But definitely not theft.

Incompetence? Slacking off? Lazy?

Fraud would be another term.

But as others have stated this should have been taken care of earlier. To fire them and then give the excuse afterwards meant they allowed the actions to happen.