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Judged too quickly: how an alleged theft cost the employer dearly

An employee with 36 years of service at a sausage factory decided to take a bag full of sausages home after one of his shifts. As he did not pay for the sausages, the employer intervened immediately upon discovering the incident. The employee was instantly dismissed for (alleged) theft. A court case followed in which he challenged his dismissal and claimed compensation. On paper, it seemed like a done deal. Yet both the subdistrict court and the court of appeal ruled that there was no urgent reason for the dismissal. The employee was awarded over two tons in compensation.

Taking sausages home had become a custom, not theft

The employee in question took home some sausages on 3 May 2024. On 6 May 2024, he was dismissed immediately. The dismissal letter stated, among other things, that the employee had taken sausages in a plastic bag after his shift without paying. The letter further noted that a crate is normally present with sausages that employees are allowed to take home free of charge, but this crate was not there on 3 May 2024.

The employee did not want to return to the workplace and claimed fair compensation. In first instance, the subdistrict court awarded him no less than €150,000 (ECLI:NL:RBNHO:2024:8684). The court ruled that there was no urgent reason for dismissal, as required under Sections 7:677 and 7:678 of the Civil Code. The employer did not have a clear policy regarding taking sausages home, and it appeared plausible that there was an established custom allowing employees to take home unsellable sausages.

The employer appealed the ruling (ECLI:NL:GHAMS:2025:2023), maintaining that the dismissal was legally valid. According to the employer, sausages were not allowed to be taken home without payment. There was no so-called “crate habit” allowing employees to take home unsellable sausages. The internal regulations also stated that theft was prohibited and that proven theft would result in immediate and irrevocable dismissal.

No pressing reason: the employer’s tolerated policy

The court of appeal ruled that there was no urgent reason justifying the dismissal. It sided with the employee, noting that the employer had a policy of tolerance. Evidence showed that a crate of sausages was regularly available at the hygiene lock for employees to take home—a practice that had been in place for years.

Although the company’s rules prohibited taking products without payment, in practice this was not treated as a violation. As a result, the alleged theft by the employee could not be established.

Furthermore, the court of appeal found that the employer had not sufficiently considered the employee’s personal circumstances. At the time of dismissal, he was 59 years old and had been employed for nearly 37 years. Apart from two official warnings regarding the smoking policy, he had an exemplary employment record. Given his age and long service, the financial impact of the dismissal would be significant.

A bag full of sausages ends up costing the employer hundreds of thousands of euros

The employee was ultimately awarded over €200,000 in compensation. In addition to fixed damages of €22,076.30 gross and transitional compensation of €52,619.01 gross, he was entitled to fair compensation of € 150.000 gross. The reason? There was no urgent cause for immediate dismissal, meaning the employer acted seriously culpably.

The court of appeal determined that fair compensation of €150,000 gross was appropriate. In setting this amount, the court considered all circumstances of the case, in line with the principles established by the Supreme Court in the New Hairstyle judgment (ECLI:NL:HR:2017:1187). (If you want to know more about the New Hairstyle judgment: read the following blog: New Hairstyle: the outcome – Wieringa Advocaten).

The court of appeal also took into account that the employee had served the company satisfactorily for 36 years and had only received two warnings, both related to the smoking policy. It was plausible that he would have continued working for the employer until his planned retirement on 13 March 2032.

Lessons for employers

A legally valid summary dismissal for theft must meet very strict requirements—it is truly a last resort. After summary dismissal, an employee loses entitlement to wages, transitional compensation, and often unemployment benefits. Because the consequences are so severe and errors can be costly, it is crucial for employers to understand their legal position, especially when there is no clear policy regarding taking items from the workplace.

If you find yourself in a similar situation or want to prevent such costly mistakes, contact us. We are happy to advise on the correct legal steps and help ensure any dismissal is handled properly.

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Judged too quickly: how an alleged theft cost the employer dearly