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Dismissal after conflict of interest in business with partner?

Can an employee fire his girlfriend as a business partner?

In the world of labor law, seemingly small missteps can have major consequences. That became clear in a case at container carrier Jordex, where an employee was guilty of conflict of interest by hiring his girlfriend's company without publicly disclosing it. What exactly was going on, and why was the employee summarily fired?

Failure to disclose conflict of interest

Jordex, a company that works with waivers, had outsourced this task to outside parties. An employee asked for permission to use another company for these tasks. However, what he did not tell them was that his friend's company would be doing this work. This eventually led to immediate dismissal. The employee had not disclosed his girlfriend's interest in the process, leaving Jordex with no way to fairly assess the situation.

Why was the dismissal justified?

The subdistrict court in Rotterdam found that failure to disclose this conflict of interest prejudiced the employer. It was seen as lacking honesty and transparency, which is crucial for a good working environment. The employee had deliberately denied the employer the opportunity to make an informed decision about hiring his friend's company. Moreover, it appeared that the employee himself gained a financial benefit from working with his friend's company.

Lying to hide the truth

The situation got worse when the employee, suspecting that his employer would find out the truth, made an attempt to hide the situation. He lied about his girlfriend's involvement and used a friend's name to make it look like he worked at the company. Moreover, he even offered this friend money to do it for him, including transferring a monthly salary for a fake bank statement. This caused the judge to permanently confirm the summary dismissal.

The consequences for the employee

As a result of his actions, the summary dismissal was upheld. The employee lost his right to transitional compensation and also had to pay legal costs , which amounted to EUR 15,000. This case illustrates the importance of honesty and transparency in the employment relationship and highlights the legal risks of conflicts of interest and deception.

arbeidsadvocaat.nl

Hiring your friend's company at work, can this be done just like that? #employment arbeidsadvocaat #labor law

♬ original sound - Stijn Blom

This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.

Arbeidsadvocaat.nl is happy to think with you if you have questions about dismissal law. Please feel free to contact us . 

April 2025

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