The case before the court
An employee of a housing cooperative had worked for his employer for around 30 years and had been responsible for the modernization and maintenance of the apartments as technical manager for more than 20 years. Over the years, he had often taken payments from craftsmen: In addition to each invoice, he received three-digit to smaller four-digit amounts in cash.
The employee’s “cash practice” was only discovered after many years. At the end of 2022, the man was convicted of corruption. On the other hand, it could not be proven that his superior had taken bribes.
Subsequently, the housing cooperative sued the man for the transfer of the bribes, arguing unauthorized third-party business, totaling all of the bribes that the man had received over the years. It turned out that bribes of around 1.45 million euros had been paid to “responsible persons at the cooperative”, in particular to the “janitor”.
During the proceedings for the transfer of the bribe money, the man denied ever having accepted bribes. However, the man was unable to explain the large cash deposits into his account.
Legal basis for claim to payment?
What is the legal basis for such a claim to payment by the employer when employees receive bribes?
There are two conceivable legal bases in this case:
It is possible to claim the amount of the bribe from the employee as damages due to an unlawful act pursuant to Sections 823 and 826 (2) of the German Civil Code (BGB) in conjunction with Sections 266 and 299 of the German Criminal Code (StGB).
It is equally conceivable to claim the transfer as a consequence of unauthorized business activity pursuant to AASections 667, 687 (2) and 681 of the German Civil Code (BGB).
Bribe payments to be transferred in full
The Cologne Regional Labor Court based its verdict on a claim for the transfer due to unauthorized business activity.
The verdict was clear in this case involving a spectacularly high bribe: If an employee accepts bribes as part of their contractual duties (false voluntary agency!), then their employer is entitled to claim the transfer of the total amount of the bribe payments.
If the, in this case convicted, offender refuses to disclose the amount of the bribe payments, forcing an estimate, the offender does not benefit from the estimated amount being limited to minimum damage. The offender is required to transfer the entire estimated bribe amount.
Consequently, the employee was sentenced to transfer the total sum of the bribe estimated for all of the years to the employer. This added up to approximately 1.45 million euros.
What can we do for you?
Do you have questions about compensation and claims for the transfer against corrupt employees? Do not hesitate to contact us!
Summary of the key facts:
- Accepting bribes in connection with an employment relationship is a criminal offense and entitles the employer to terminate the employment contract without notice.
- Civil law entitles employers to demand that the employees transfer the bribes.
- If the offender refuses to disclose the amount of the bribe payments, they do not benefit from the estimated amount being limited to the minimum.
