Cologne Regional Labour Court: Senior executive liable for damages running into millions
Any employee who falls for professionally forged payment instructions from supposed superiors risks not only losing their job but, under certain circumstances, also facing personal liability for damages running into millions. This is demonstrated by a sensational ruling from the Cologne Regional Labour Court. The ruling increases the liability risks for senior executives in particular: in the court’s view, D&O insurance financed by the employer can result in the principles of limited employee liability being overridden. However, the final word has not yet been spoken. An appeal is pending before the Federal Labour Court.