To be blunt anyone who thinks that a employee will not look for an angle to make their life easier or pocket a bit of extra cash because in thier head they got the L"oreal effect "because i'm worth it ", is being niaeve.
By all means treat your staff fairly, meet your legal requirements under current employment legislation but do not expect any member of staff to treat your business the way you do. Your loyalty is to your business, theirs is to the pay packet.
Work to your weakest link if you have a toerag you suspect is taking the mick put safeguard in place to protect you an your business, it doesn't hurt to let even the staff you trust that you won't be taken for a fool.