Introduction
A director has a special position of trust within an organization. When company assets are misused, this can have far-reaching employment law consequences. This blog discusses a recent case in which a director was summarily dismissed for private use of company assets and funds.
Misuse of company assets
An employee joined a company as a director and thus gained access to a variety of company assets. Instead of handling these carefully, he misused them extensively.
For example, he organized private parties in the company building, using the employer's stock. Nothing was kept of the consumption. In addition, he hired his own partner as a freelancer, without reporting this. The partner sent hefty invoices of about €5,000 each time, while the employer did not know that they had a relationship.
The driver also bought large quantities of Spa Reine and Old Amsterdam cheese at the company's expense, as well as a cooler for his own use. The expenses did not stop there: during a stay in Austria, he spent €1,000 at an erotic center, again at the employer's expense.
As if that wasn't enough, when he turned in his business MacBook, he also deleted all files and data that belonged to the employer.
Instant dismissal and hefty damages
The employer found the driver's behavior so serious that immediate immediate immediate dismissal was given. The subdistrict court fully agreed with the employer in this regard.
The consequences for the employee were substantial. He had to pay over €2,000 in litigation costs from the employer. He also had to repay about €3,500 for the cost of the parties, €400 for privately purchased items, and the full €1,000 he had spent at the erotic center.
Moreover, because the employee had acted with serious culpability, he was not entitled to transitional compensation.
Lesson for employees and employers
This case shows that misuse of company assets, especially by someone in a position of trust such as a director, can have serious employment law consequences. Employers can and do take firm action in such situations, including summary dismissal without entitlement to any compensation.
Conclusion
Misuse of company resources by an employee, especially in a position of trust, can result in summary dismissal without entitlement to compensation. Employers may act firmly in cases of seriously culpable behavior, as evidenced by this ruling. Integrity remains essential within any employment relationship.
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 summary dismissal. Please feel free to contact us .
April 2025
