Social fraud justified summary dismissal

An employee of the Social Insurance Agency received housing benefits for the duration of her employment. As part of the conditions for receiving housing benefits, she was required to inform the Social Insurance Agency of any changes to her circumstances.

However, when her circumstances changed significantly, she never informed the Agency. Instead, she continued to receive housing benefits unlawfully for almost half a year. Her fraud was not uncovered until the Tax Agency notified the Social Insurance Agency. That resulted in a police report and, one month later, an internal investigation. Three months after the police report, the employee was summarily dismissed.

The Labour Court agreed that the summary dismissal was justified because there was no longer any trust in the employee. It also considered that the two-month deadline had been respected. The deadline had to start when the investigation was concluded, not when the police report was filed.

IUNO’s opinion

Besides showing that actions unrelated to the work can have consequences, the case is a good example of the two-month deadline. It illustrates that the deadline counts from when an investigation shows wrongdoing. However, it will always be a case-by-case assessment, including whether an investigation is necessary before proceeding with a termination.

IUNO recommends that companies act quickly when an employee’s circumstances make a termination necessary. It is important to secure documentation and, depending on the case, issue prior written warnings to avoid claims for compensation and reinstatement.

We have previously written about off-duty crimes when a police officer was terminated after unlawful searches in the police database here.

[The Labour Courts decision of 25 April 2025 in case no 23/25]