In practice

Holiday season. Employers also ease off somewhat and postpone administrative checks until after the holidays. But when reviewing company expenses, it turns out that several refuelling transactions during the holiday period were paid for using the company fuel card. Clearly not for business trips. After all, the employee was also on holiday.

These may not be large amounts, but such a situation can nevertheless have far-reaching employment law consequences.

The question then is: is this a minor annoyance, or grounds for summary dismissal?

The answer is less straightforward than many entrepreneurs might think. Case law shows that, yes, summary dismissal is possible. But only if you handle it properly.

The legal point

Summary dismissal is only permitted where there is an urgent cause. In short, the conduct must be such that you can no longer reasonably be expected to continue employing the employee. The court considers all circumstances, including the seriousness of the conduct, the employee’s length of service and whether there have been previous issues.

In cases of summary dismissal, the ultimate question is whether the employer can reasonably still be required to continue the employment relationship. Trust often plays a central role in that assessment.

Particularly in cases involving misuse of company resources, courts look not only at the financial loss, but above all at the integrity of the employee’s conduct.

The judgments show how strict courts can be when it comes to private use of a company fuel card.

One refuelling transaction of €50 was already enough: The Rotterdam subdistrict court ruled on a case involving an employee whose spouse had, without permission, used the company fuel card to fill up the private car for €50.21. This was entirely private use. The employee said nothing about it and later gave inconsistent explanations. The summary dismissal was upheld. Repayment afterwards did not help him. The employee was also not awarded a transition payment or any other compensation.

Other cases also show that the amount involved is not decisive. The Supreme Court upheld a summary dismissal despite a long and good employment record, while the Central Appeals Tribunal held that an informal company culture does not provide a licence for private use of company resources.

What does this mean for entrepreneurs?

The main lesson is simple: it is not only about the amount involved. It is primarily about trust, the circumstances and how you deal with the situation.

Legally sharp – tips for entrepreneurs

Do you want to be in a strong position as an entrepreneur? Then make sure, in any event, that you do the following:

• Record the use of fuel cards and other company resources in writing. Include clear rules in your policy, employment contract or company regulations. For example, state explicitly that the fuel card may only be used for business trips.
• Regularly check the use of fuel cards and expense claims. Identify irregularities in good time and record what you find.
• Carefully investigate any suspected misuse and hear the employee before drawing conclusions. Quickly establish what happened, give the employee an opportunity to respond and record which steps you took and when. Do not allow the investigation to take longer than necessary.
• Act quickly once the facts have been established. Explain specifically in the dismissal letter why summary dismissal is necessary. Also take the employee’s personal circumstances into account and show that you have made a genuine assessment.
• Always have a summary dismissal legally reviewed before taking that measure. Do not use a standard letter or AI-generated text without legal review. In cases of summary dismissal, the measure is too serious and the consequences too significant. The reason, the assessment and the timing must be exactly right.

In conclusion

A private refuelling transaction amounting to only a few dozen euros may seem like a minor incident.

However, case law shows that it is primarily about trust. That is precisely why entrepreneurs would be wise to set clear rules, actively monitor the use of company resources and seek legal advice immediately if misuse is suspected.

What starts small can have major employment law consequences.

Questions or need advice?

Do you have questions about the use of company fuel cards, company resources or summary dismissal? Please feel free to contact us without obligation. We would be happy to think along with you and advise you on the right next steps. You can reach us at info@acginter.com.