Covert Monitoring of Employees Can Prove Costly for Employers

GDPR Does Not Easily Permit Covert Investigations

The District Court of The Hague recently issued a clear warning to employers who secretly monitor their employees. In this case (ECLI:NL:RBDHA:2026:18633), an employer examined an employee's login and logout data without his knowledge to determine whether he had worked the required number of hours. Based on the findings of that investigation, the employer summarily dismissed the employee. However, the court set the dismissal aside, holding that the investigation had been conducted in breach of the General Data Protection Regulation (GDPR) and that the summary dismissal could therefore not be upheld.

According to the court, the employer lacked a legitimate interest to justify the covert collection of the employee's login and logout data. Although the employer referred to missed deadlines and concerns about the number of hours worked, these circumstances were insufficient to justify immediately resorting to hidden monitoring. The court also considered it relevant that the employee had recently received a positive performance evaluation and even a salary increase. In those circumstances, the employer should first have addressed its concerns with the employee instead of immediately using such an intrusive monitoring measure.

Login and Logout Data Do Not Tell the Whole Story

The court further held that the collected data did not provide sufficient evidence to conclude that the employee had consistently worked fewer hours than required. The employer had relied exclusively on the employee's login and logout times on the company's network. According to the court, such data cannot automatically be equated with the actual number of hours worked, as employees may also perform work offline. Moreover, the investigation covered a relatively short period of approximately four and a half weeks, making it impossible to establish a structural pattern. Since the employer had based its decision almost entirely on th

A Costly Lesson for Employers

The financial consequences for the employer were significant. In addition to the statutory compensation for irregular termination (€11,544.34) and the statutory transition payment (€12,462.68), the court awarded the employee fair compensation of €60,000. According to the court, the employer had acted seriously culpably by dismissing the employee with immediate effect without sufficient grounds and on the basis of an unlawfully conducted investigation.

This judgment highlights the importance of exercising caution when monitoring employees. While digital monitoring tools can provide valuable information, they may only be used where there is a clear legal basis and where the monitoring is necessary and proportionate. Before resorting to employee monitoring or disciplinary measures, employers should first discuss any concerns with the employee and consider whether less intrusive measures are available. This judgment demonstrates that an overly hasty or unlawful approach may not only result in an invalid dismissal but can also expose employers to substantial financial liability.