Fraud in the workplace: when trust disappears, what then?🤔

A recent judgment of the Arnhem-Leeuwarden Court of Appeal dealt with an interesting case that reminds us of the complexity of fraud in the workplace. In it, it was found that an employee was not liable for fraud committed by her supervisor. This raises an important question for employers, namely how do you deal with suspicions of fraud within the organisation? 

Steps to take

If an employer suspects that an employee is involved in fraudulent activities, it is important to go through a number of steps. First, start by gathering evidence. There is no point in accusing an employee of fraud if, as an employer, you cannot substantiate it. Next, it is important to have a conversation with the employee in question to confront them with the suspicion. This conversation should be open and honest and preferably the employee should be invited to the office.

Depending on the outcome of this conversation, an employer may consider various measures. These can range from an official warning to, in the worst case, summary dismissal. Here, it is important to make the right consideration as a wrong decision can have significant adverse financial consequences.

The damages

If an employer then wishes to hold the employee liable, it is important to remember that intent or deliberate recklessness is necessary to do so. Proving either can be quite a difficult task for an employer. 

Prevention

It is always, but even more so in the case of fraud, best to prevent rather than cure. This starts with strengthening the integrity culture within the company where clear guidelines and control systems are essential. For example, also consider checking references with new employees or requesting a Certificate of Good Conduct (VOG) as standard.

Finally, every situation is unique. What works for one company may not be as effective for another. Stay alert and prepared, and remember: in the fight against fraud, knowledge of the law is indispensable. If an employee suspects fraud, it is important to seek timely legal advice.

Do you have questions about this or are you dealing with (suspected) fraud? If so, please contact Dennis Oud, Tessa Sipkema, Elke Hofman or Tim van Riel.

You can read the ruling here.