Spanish fashion giant Zara ordered to pay nearly 100,000 euros compensation to employee who was fired for stealing clothes from store

The Spanish fashion giant Zara has been ordered to pay almost 100,000 euros to a former employee whose dismissal by the fashion brand for allegedly stealing several pieces of clothing was ruled unfair by two courts.

The sentence was initially served by the 41st social court of Madrid, after which is was upheld by the High Court of Justice of Madrid. Both found that the dismissal had been unfair, because the former employee's locker had been opened while she was on sick leave, without her consent.

The plaintiff had been working for the Inditex group, which Zara is part of, since 1999 and had a gross monthly salary of approximately 3,900 euros as operations manager in the ladies' section.

The staff lockers were changed at the end of 2023. According to the judgement, the plaintiff's locker was opened by the shop's management body and a workers' representative, but without any independent witnesses present. Inside, they found five items from the shop, with their labels. The value of these items amounted to just over 205 euros.

The company asked the employee for proof of purchase and, when she did not provide one, she was given a disciplinary dismissal. According to the company, all items of clothing found inside her locker corresponded to stock shortages, while a pair of shoes had no recorded sale.

The former employee filed a complaint for unfair dismissal and for violation of fundamental rights, mainly the right to privacy, arguing that at no time had she been asked for permission to have her locker opened. In addition, her defence alleged the opening had been done in an irregular manner.

The 41st Social Court of Madrid ruled that the dismissal had been unfair and obliged the company to choose between reinstatement of the worker or compensation of 90,742.72 euros. In addition, it added a payment of 7,501 for moral damages, considering that her right to privacy had been violated, since the search had been carried out without prior notice and without her being present.

Zara appealed, but the Madrid High Court of Justice upheld the initial judgment, dismissed the appeal and ordered the company to pay court costs.