Introduction
Immediate termination has far-reaching consequences for an employee: the employment relationship ends immediately, wage payments cease, and the right to unemployment benefits usually lapses. The law therefore sets high standards for justifying such a termination. Not only must there be an urgent reason, but the employee’s personal circumstances may also be taken into account. A recent ruling by the Lelystad Subdistrict Court illustrates how this can lead, in practice, to the dismissal being overturned.
Personal Circumstances in Cases of Immediate Dismissal
The legal test for summary dismissal centers on proportionality. There must be an urgent reason, such as theft, violence, or fraud. However, the severity of the conduct must also be weighed against the employee’s personal circumstances. In practice, employers sometimes underestimate the importance of this aspect.
If the termination has disproportionate personal consequences, that may be taken into account when assessing whether the termination is valid. That assessment must always be made, no matter how serious the conduct may be.
The Case: Employee Fraud, but Dismissal Overturned
The case before the Midden-Nederland District Court involved a single mother of four children who worked at an auto repair shop. She had her car repaired by her employer. The actual work time was 4.44 hours, but she billed for only one hour and consequently paid €134 instead of €380. The employer considered this to be fraud and terminated her employment immediately.
At first glance, this termination seemed justified. After all, tampering with an invoice for personal gain constitutes a serious breach of duty. Nevertheless, the labor court judge found sufficient grounds to overturn the termination, precisely because of the employee’s personal circumstances.
The Decisive Personal Consequences
What made the difference in this case were the concrete and serious consequences of the termination for the employee:
- She had just sold her home and was about to buy a new one.
- As a result of the termination, the bank withdrew the financing for the new home.
- As a result, the purchase did not go through.
- The woman and her four children had to move into a mobile home temporarily.
Although the judge characterized the employee’s conduct as serious, he found that summary dismissal was disproportionate in this context. Her personal situation was the deciding factor. The dismissal was overturned, which means that her employment relationship formally continued and the employer was required to continue paying her wages.
An Important Lesson for Employers
This ruling shows that a valid reason alone is not always sufficient for a valid summary dismissal. Employers must also take the employee’s individual circumstances into account. Factors such as family circumstances, living conditions, financial risks, and the length of employment can be decisive in the court’s assessment.
Employers are advised to:
- to seek legal advice in advance;
- to assess the employee’s personal circumstances;
- consider alternatives, such as an official warning or termination by mutual agreement.
Conclusion
Immediate termination is not only a legal matter but also a human one. The court looks beyond the facts alone; the consequences for the employee also play a role. In exceptional cases, such as when there are distressing personal circumstances, this can lead to the dismissal being overturned. Employers are therefore advised to assess not only whether the conduct is serious enough, but also whether the dismissal is proportionate given the circumstances.
This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.
Arbeidsadvocaat.nl is happy to assist you if you have any questions about summary dismissal. Please feel free to contact us .
April 2025