Handling reports of inappropriate conduct in the workplace is often a sensitive and complex process. This was once again made clear in a ruling by the Amsterdam District Court on 4 September 2024. The case centered on a director of a personnel planning and management consultancy. This case highlights not only the importance of care for the person making the report, but also of fair and careful treatment of the accused.
Background of the case.
In November 2023, the consultancy received reports of inappropriate conduct by a director who had been employed since 2020. The employer acted quickly: the director was immediately suspended, and all employees received an email about the situation and the announced external investigation the following day.
The allegations were varied: from sexually charged remarks and an explicit message to a working student, to intimidating behavior. Although the director admitted to having had an affair with a colleague, the investigation found that the remaining allegations could not be proven due to a lack of evidence and conflicting statements.
The director felt seriously wronged by his employer’s handling of the matter. He went to the subdistrict court and himself requested dissolution of his employment contract, citing seriously culpable conduct on the part of the employer.
The court’s ruling.
The court ruled in favor of the director. The employment contract was dissolved due to a situation that had by then become untenable as a result of the employer’s actions. The ruling was not lenient toward the employer:
- Suspending the director immediately without first hearing him out was careless;
- Informing all employees about the reports without giving him the opportunity to respond seriously damaged the director’s reputation;
- It was not until two months after the reports that the director received clarity about the allegations.
Even after the investigation concluded that most of the allegations could not be proven, the employer continued to stand by the reports without reflecting on its own role and conduct. In addition, the court held it strongly against the employer that there was no effective policy in place to prevent inappropriate conduct in the workplace. [1]
As a result, the court awarded the director fair compensation of €100,000 gross, in addition to a transition payment of €14,452.82 gross.
Lessons for employers
This case shows how important care and transparency are when handling reports or complaints about inappropriate conduct.
Employers should:
- Handle reports carefully: Take reports seriously, but give the employee involved the opportunity to respond to the allegations.
- Investigate objectively and transparently: Inform those involved in a timely manner about the allegations and the progress of the investigation.
- Avoid premature conclusions: Communicate cautiously about the matter to avoid reputational damage and to protect the privacy of everyone involved.
- Pursue an active policy against inappropriate conduct: A clear code of conduct, policy, and preventive measures can prevent escalation and legal consequences.
Masterclass: Become an internal confidential advisor in one day!
Appointing an internal or external confidential advisor can prevent many escalations and conflicts. Confidential advisors provide employees with a safe place to make reports, and support employers in handling these reports carefully. A well-trained confidential advisor can effectively help prevent escalations and conflicts.
On Thursday 10 April 2025, The Legal Company is organizing a masterclass on, among other things, the role of confidential advisors in preventing and addressing inappropriate conduct. During this masterclass, you will learn how to set up an effective confidential advisor structure and how it can contribute to a safe and respectful workplace culture.
Want to know more?
Contact us at info@thelegalcompany.nl to prepare your organization for an effective approach to inappropriate conduct. This will help you avoid damage to your company’s reputation, costly legal proceedings, and unworkable situations in the workplace.
[1] Courts increasingly hold it against employers when there is no clear code of conduct within the organization; see, for example, also: Midden-Nederland District Court, 9 February 2022, ECLI:NL:RBMNE:2022:563.
This article was published on 29 January 2025.
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