Long tenure, lost trust: termination after 46 years

On February 12, 2026, the District Court of The Hague issued an interesting ruling regarding the termination of an employment contract due to a breakdown in the working relationship. The ruling demonstrates that while an employer may not always succeed in terminating a contract on the basis of “e-grounds” (integrity issues and alleged fraud), it can ultimately achieve termination on the basis of “g-grounds” (irreparable damage to trust) if the trust between the parties has been irreparably damaged.

In this case, Stedin accused an employee with a very long tenure of having committed fraud regarding working hours and of engaging in so-called “time theft.” The employer based its case, among other things, on discrepancies between records in internal systems and data from the company vehicle’s tracking system. The subdistrict court ruled that there was indeed culpable conduct, but not that fraud had been committed intentionally. A factor in this ruling was that the employee had argued he had difficulty with the registration system and that Stedin, partly in view of his long service record, should have provided him with better guidance. The “e” ground therefore did not hold up.

Nevertheless, the employment contract was terminated because the employment relationship had by then become seriously and permanently disrupted. At the hearing, the supervisor and the investigators remained convinced that fraud had occurred, making a normal return to the position no longer considered realistic. The employee therefore received the transition allowance, but no fair compensation. According to the subdistrict court, there was no serious culpable conduct on the part of Stedin, in part because, under the given circumstances, it was not unreasonable for them to have initiated an integrity investigation and to have lost trust. The ruling thus underscores that an unsubstantiated ground for termination need not preclude termination if the allegations and the subsequent proceedings have permanently damaged the employment relationship.

As an employer, however, be aware that the cause of the disrupted employment relationship must not lie with you. In that case, the threshold for grossly culpable conduct and fair compensation for the employee is easily met. 

Do you have any questions? Please feel free to contact Dennis Oud, Tessa Sipkema, Elke Hofman-Bijvank, or Noa Bilogrevic. 

You can read the ruling here.