Many employers struggle with recovering compensation from particularly careless employees for damage to employer property – this could include a company car, laptop, machinery, or other items owned by the employer and intended for work. It can also be a difficult task to recover compensation for an employee's actions or omissions that caused damage to the employer. The fundamental question, however, is whether the employee is liable for such damages?
Employee liability for damage
Generally, an employee will be liable for damages they cause to their employer. However, the amount of such liability will be limited, depending on the perpetrator's fault. As a rule, an employee is liable only for an amount not exceeding three months' salary. The only exception is when the damage is caused intentionally, in which case the employee will be liable for the full amount of the damage.
It is worth emphasizing, however, that an employee's liability is limited to the loss actually suffered by the employer, which is characterized by a normal causal relationship between the employee's conduct and the damage. This refers to actions that, in the normal course of events (without any unforeseen circumstances, even if they are not foreseeable), result in damage.
Employee and employer's property
Employee liability for property entrusted to them is somewhat different, subject to the obligation to return or account for it. This includes not only money but also work clothes, tools, and other items. In such a situation, the employee is liable for the full amount of damage.
An employee may be released from liability if he proves that the damage was caused by circumstances beyond his control.
Obligation to return entrusted property
An employer has the right to demand the return of entrusted property from an employee regardless of whether the employment relationship ends or continues, as the employee only has control over the property. The obligation to return property upon the employer's request arises from Article 124 of the Labor Code. In the event of a request to return entrusted property, the employer should inform the employee of this request in advance. At the same time, the employer should specify the location and time the employee is to return the property. However, there are no regulations prohibiting an employer from demanding the return of property from an employee who is on sick leave.
How to recover compensation?
Enforcing compensation from an employee will typically involve legal proceedings, in which the employer will be required to demonstrate not only the employee's fault, liability, and the conduct that caused the damage, but also the amount of such damage. Therefore, it is worthwhile to gather the evidence necessary for the proceedings already at the stage of preparing for this type of claim.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of September 26, 2024
author:
