Correct, father to son transfers require no "Application of Sale/Transfer" be filled out per
§ 6111. Sale or transfer of firearms.
--snip--
(c) Duty of other persons.--Any person who is not a licensed
importer, manufacturer or dealer and who desires to sell or
transfer a firearm to another unlicensed person shall do so only
upon the place of business of a licensed importer, manufacturer,
dealer or county sheriff's office, the latter of whom shall
follow the procedure set forth in this section as if he were the
seller of the firearm.
The provisions of this section shall not
apply to transfers between spouses or to transfers between a
parent and child or to transfers between grandparent and
grandchild.
--snip
As for your co-worker. If the took the gun SOLELY based on it being his fathers and he has a LTCF like you mention then it was an illegal seizure.
...More info please
Additionally, if you have a LTCF you can "borrow" anyones firearm, per SS6115
(
http://www.legis.state.pa.us/WU01/LI...18/00.061..HTM)