Labor Law: The dismissal of an employee due to drug dealing during their free time can be lawful. - MTH Rechtsanwälte Köln
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Employment law
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von: Helmer Tieben

Federal Labor Court, 10.04.2014, Case No.: 2 AZR 684/13

In both cases of conduct-related and person-related termination of an employee, a careful and comprehensive weighing of interests must first be carried out. The employer’s interest in the termination is weighed against the employee’s interest in continued employment.

For the employer, the following factors are considered:

      • Nature and extent of operational disadvantages,
      • Maintenance of the company’s functionality,
      • Risk of recurrence,
      • Damage to the employer’s public reputation.

For the employee, the following factors are considered:

      • Nature, severity, and frequency of the alleged breach of duty,
      • Previous behavior of the employee,
      • Employee’s insight,
      • Length of employment and employee’s age.

In the case discussed here by the Federal Labor Court, the court had to decide whether the dismissal of an employee of the Federal Employment Agency was lawful, although the employee had dealt drugs in his free time.

Facts of the Legal Case

Plaintiff was a caseworker at the job center and convicted of drug trafficking.

The plaintiff had been employed by the defendant Federal Employment Agency as a caseworker for “benefits under SGB II” since 2005. In 2001, he was sentenced to a combined prison term of one year and nine months for intentional illicit drug trafficking and aiding in such, with the sentence being suspended on probation and lifted in 2003.

In a letter dated 18.07.2011, the public prosecutor’s office informed the defendant, enclosing the indictment, that the plaintiff was again accused, along with another person, of engaging in illegal cocaine trafficking.

On 15.08.2011, a meeting was held between the parties during which the plaintiff denied having dealt or used drugs.

However, following a broad confession, the plaintiff was convicted on 26.01.2012 for illegal drug trafficking in significant quantities and sentenced to a combined prison term of one year and eight months, also suspended on probation. The plaintiff informed the defendant of this on the same day.

After the plaintiff had again engaged in drug dealing, the defendant terminated the employment relationship both without notice and with notice.

By letter dated 06.02.2012, the defendant, after consulting the works council, terminated the employment relationship of the parties without notice. In a subsequent letter dated 28.02.2012, after further consultation with the works council, the defendant also gave notice of termination effective 30.06.2012.

With his timely filed dismissal protection lawsuit, the plaintiff challenged both terminations and sought a declaration that the employment relationship between the parties had not been dissolved by either the extraordinary termination of 06.02.2012 or the ordinary termination of 28.02.2012. He also sought an order requiring the defendant to continue employing him as a caseworker for benefits under SGB II, with remuneration according to pay group TE IV, level 2.

Plaintiff Filed Dismissal Protection Lawsuit, Lower Courts Rejected It

The lower courts initially hearing the case deemed the extraordinary termination invalid, but the ordinary termination as socially justified. The plaintiff pursued his claim in full with his appeal to the Federal Labor Court.

Federal Labor Court’s Judgment on Appeal

The Federal Labor Court ruled that the plaintiff’s appeal was unfounded.

The termination of 28.02.2012 was socially justified under § 1 para. 2 KSchG.

Although the termination was not due to the plaintiff’s conduct, the defendant was entitled to terminate the employment for reasons related to the plaintiff’s person, as the plaintiff lacked the necessary suitability to perform his duties.

Section 1 para. 2 sentence 1 Alt. 1 KSchG allows the employer to terminate the employment relationship if the employee no longer possesses the necessary suitability or ability to perform the agreed-upon work according to the contract.

Even illegal conduct outside of work can cast doubt on an employee’s reliability and trustworthiness, which may lead to the employee being deemed unfit to perform their future duties. Whether this constitutes grounds for termination depends on the nature of the offense, the employee’s specific job duties, and their position within the company.

In this case, the plaintiff was employed in the area of benefit approvals under SGB II, a role involving public interaction in an official capacity. The private—illegal—sale of drugs was incompatible with these responsibilities.

The performance of official duties in public administration requires the exercise of those duties with integrity and diligence at all times.

Criminal behavior outside of work can raise concerns that the employee may also come into conflict with legal requirements in a professional context. This undermines the necessary trust of the public in the legality of the administration.

The weighing of interests in this case favored the defendant. Although the plaintiff’s nearly seven years of employment with the defendant were taken into account, the defendant’s interest in terminating the employment outweighed this.

Source: Federal Labor Court

Important Notice: The content of this article has been prepared to the best of our knowledge and understanding. However, due to the complexity and constant evolution of the subject matter, no liability or guarantees can be assumed.

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