Stuttgart, Dusseldorf It was an awkward appointment for the consulting firm Deloitte. A former project manager who was fired by Deloitte at the end of November 2021 raised serious allegations against his former employer at the Stuttgart Labor Court last week. This is said to have charged the major customer Volkswagen more hours of work than were actually worked.
For Deloitte, one of the four major auditing and consulting firms, even meeting the ex-employee in court is damaging to his reputation. It is not just about the legality of a termination. Rather, there is also the question of whether Deloitte reacted appropriately to indications of alleged internal abuses. Many companies are currently considering how to deal with whistleblowers.
The background in the specific case: In 2018 and 2019, the plaintiff worked on a project for the major customer Volkswagen. After the diesel emissions scandal, the car manufacturer wanted to set up a global compliance management system – also with the help of Deloitte. From March 2019, the man took over the management of the project. Then he claims to have realized that Deloitte is betraying its own customers.
At the conciliation hearing in the courtroom, the plaintiff appeared tense but very motivated, sometimes over-motivated, as he went into details without question from the judge. “When I noticed that something was absolutely wrong with the billing of 900 hours, I went to the project partner at Deloitte and informed him about the suspicion of serious billing fraud at the expense of VW,” he said.
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After that, nothing happened to explain it. “I was never asked about the facts,” claims the ex-project manager. Not true, Deloitte said: “After becoming aware of these tips, we conducted an immediate and thorough investigation and found that the allegations are unfounded and untrue,” said a spokeswoman.
The plaintiff does not want to believe that – and wants to be able to prove exactly how many hours worked were billed and which were actually worked. According to reports, it should be about a low six-digit amount. The former project manager pulled five folders, one of them bright red, out of two pilot cases. “I have 25 years of experience and documented everything properly,” the plaintiff tells the judge. Without his insider knowledge, Deloitte would not be able to clarify the matter. How unpleasant the content is for the company should become apparent in the course of the process.
Deloitte sees labor law violations
In 90 minutes he could explain the facts in such a way that “every expert third party knows what was wrong here. I have evidence and witnesses,” the plaintiff claimed. Instead of listening to him, he was fired on November 30, a total of four times. The plaintiff sees a direct connection. A spokesman for VW said they had been informed about the whistleblower system and are now looking at the case.
Deloitte’s lawyer dismissed the allegation that the billing fraud was “demonstrably inaccurate”. There were also offers of talks. According to Deloitte, the termination took place because the ex-employee was untrue and violated the employment contract he had signed.
In court, the Deloitte lawyer said that “highly confidential data such as offers, fees and personal data” had been stolen. There was also data that had nothing to do with the VW project. In doing so, the plaintiff significantly violated Deloitte’s IT security rules.
He also threatened to publish the internals. Therefore, there is a suspicion that the plaintiff transferred the data for purposes other than official ones. And even official use is not permitted because it is about the security of customer data.
In addition, the lawyer for Deloitte referred to a previous history: the plaintiff’s previous allegations of bullying and of having been discriminated against and ignored in a promotion because of his age had not come true.
The judge assessed Deloitte’s allegations as so serious that they could justify dismissal – if they were correct. The plaintiff, in turn, rejected them, saying he could refute the statements.
The fronts are hardened
In labor lawsuits, the judges usually suggest an out-of-court settlement. While Deloitte signaled willingness to do so, the plaintiff’s lawyer made it clear: “My client is concerned with justice.” Although they were willing to talk, they could not currently imagine any comparison that would reflect this. A brief hearing between the two lawyers in front of the courtroom door did not change that.
The fronts are hardened. “Both sides fear for their good reputation. It’s difficult to get a grip on quickly,” said the judge. He made it clear that further litigation would probably not promote the reputation of either side.
After failure of the conciliation date, both parties have to submit their pleadings in the next four weeks. Then there could be a negotiation in the matter. In any case, the plaintiff is trying to increase the pressure on Deloitte by failing to meet the quality deadline.
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