Secret recording of conversation leads to halved fair compensation

In a recent judgment by the Subdistrict Court of Overijssel, it was held that an employer acted with serious culpability by orally promising an employee that his contract would be extended, but ultimately failing to do so. The employee had secretly recorded the conversation, thereby proving that the commitment had been made. He was awarded fair compensation, but the amount was halved due to the covert nature of the recording.

Background

A senior legal counsel had been employed by Venture Group since early 2024 under a fixed-term contract. During a performance review in September 2024, the employer stated that it was still uncertain whether the contract would be converted to a permanent one or extended as fixed-term. However, the employer also explicitly stated that there would be some form of extension.

Things turned out differently: by the end of October, the employee was informed that his contract would not be extended. He initiated legal proceedings and submitted an audio recording of the earlier conversation made without the employer’s knowledge.

Expectation created, but employee's conduct also considered

The court largely ruled in favour of the employee. The employer’s statements were deemed sufficient to constitute a commitment to extend the employment at least for another fixed term. Failing to uphold that promise constituted seriously culpable behaviour, entitling the employee to fair compensation under Dutch labour law.

However, the employee did not receive the full amount he was seeking. The reason: the conversation was recorded without informing the employer, and the recording was later used as leverage in communications with HR. The court considered this inappropriate conduct.

Although the employer’s behaviour qualified as seriously culpable, the court ruled that the employee’s actions also fell short of the standards expected of a good employee. As a result, the compensation was reduced by 50%.

Practical Takeaway

Employers should exercise caution when making verbal commitments about contract renewals—even informal promises can be legally binding. At the same time, this ruling shows that employees are also expected to behave with integrity. Secretly recording conversations and using them as leverage may lead courts to reduce any compensation awarded.