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A director who secretly awarded himself hundreds of thousands of euros was not entitled to a transition payment due to seriously reprehensible conduct. Nevertheless, the employer had to pay 100,000 euros in equitable compensation — because he leaked salary data to the press after the dismissal, made the conflict public, and disproportionately searched the director's mailbox. The lesson: even with a guilty employee, you must remain careful yourself.
In this high-profile case (ECLI:NL:GHARL:2021:1884), it concerned a director who had manipulated several hundred thousand euros, and an employer who subsequently made mistakes regarding the press and private data — moreover, both parties were former partners.
What preceded it?
The director and the employer initially had a personal relationship, which was terminated but continued on a professional basis. This went wrong, partly due to suspicions of malpractice. Following a financial investigation, the employment contract was terminated. The director did not contest the dismissal herself, but did demand a transition payment and equitable compensation — totaling 1,336,640 euros. When the employer refused, she went to the sub-district court and subsequently to the Court of Appeal.
No transition payment in case of seriously reprehensible conduct
The subdistrict court judge ruled that the director had acted with serious culpability: she secretly awarded herself a bonus of 72,348 euros, secretly had an extra annual salary of 70,000 euros paid to herself, and awarded compensation of 500,000 euros to a dismissed colleague who sided with her in the conflict.
There were a total of 25 allegations, but the subdistrict court deliberately dealt with only three: if those are established, that is sufficient to make a judgment without endless discussion. On that basis, the director was not entitled to a transition payment. The Court of Appeal confirmed this: in principle, she was entitled to a transition payment after more than two years of employment, but the exception for seriously culpable conduct applied here, so that payment was withheld.
Still 100,000 euros in fair compensation — due to errors by the employer
The employer also made mistakes, as a result of which the director was entitled to fair compensation. The sub-district court initially awarded €44,064 because the termination had taken place without the required consent. The Court of Appeal substantially increased this amount because, after the dismissal, the employer:
- passed on personal salary details to the daily newspaper Tubantia;
- publicly highlighted the conflict on the company website;
- combed through the director's business mailbox, which was disproportionate to the suspicions.
The court set the fair compensation at 100,000 euros.
What do employers learn from this?
Although the director acted in a seriously reprehensible manner, the employer still had to pay a hundred thousand euros. The lesson: handle the dismissal and subsequent personal data with care, even with a guilty employee. Leaking to the press, publicly airing a conflict, or disproportionately digging into someone's mailbox can cost you dearly. Read also how to dispose of staff properly.
Frequently Asked Questions
Does an employee who commits fraud still receive a transition payment?
Not if there is seriously culpable conduct or negligence. In that case, the right to the transition payment lapses, even in the event of long service.
What is fair compensation?
Additional compensation that the judge may award if the employer has acted with serious culpability, for example through negligent dismissal or violating the employee's privacy.
Am I allowed to share or view an employee's data after a dismissal?
Exercise extreme caution. Leaking salary data or disproportionately searching a mailbox can be unlawful and lead to high equitable compensation.
Legal advice regarding dismissal
A careless dismissal can easily cost you a hundred thousand euros. The employment lawyers at MKB Juristen guide you to ensure that everything is correct both substantively and procedurally. View our expertise in employment law or schedule an intake interview .
