Dependent work must be carried out at the employer's expense and responsibility. However, in what cases may an employee be liable to compensate the employer for damage caused to them? And to what extent?
- Breach of a work obligation
The employee is obliged to compensate the employer for the damage caused by a culpable breach of duty in the course of or in direct connection with the performance of his work duties. Thus, in general, the following conditions are given for the obligation to compensate for damages:
- Breach of a work obligation při plnění pracovních úkolů nebo v přímé souvislosti s ním;
- The occurrence of damage on the part of the employer;
- Causal connection between the breach of duty and the occurrence of damage;
- (Generally) the fault of the employee, either intentional or negligent.
What if the damage was also caused by the employer's breach of duty? What if the damage was also caused by the employer's breach of duty? Then the employee's obligation to compensate for the damage is proportionately limited.
In general, for an employee to be liable for damages, their fault must be established; in the form of intent or negligence. This fault must be proved by the employer. Exceptions are cases of so-called material liability (more on that below).
The employee is obliged to repair the damage by restoring it to its previous condition, or to replace it in money.
However, limitations apply: If the damage was caused due to negligence, the monetary compensation may not exceed 4.5 times the average monthly earnings of the employee before the breach of duty.
However, this restriction does not apply if the employee caused the damage intentionally, intoxicated (by alcohol or other addictive substances). In addition, if the employee caused the damage intentionally, the employer can also demand compensation for lost profit from him.
Furthermore, the employee is also responsible for damage caused by intentional actions against good morals. In this case, the employee may not necessarily violate the obligations imposed by law, but the employee's actions are still generally perceived as immoral.
- Failure to Warn of Danger and Intervention
If there is a risk of damage to the employer, the employee has an obligation to notify the superior manager. If it is necessary to act urgently, the employee has an obligation to intervene to prevent the damage (except for the case when he is unable to prevent the damage - e.g. he does not have the necessary physical skills or knowledge, or would expose himself or other persons to serious danger).
In the event that the employee did not warn about the danger or did not take action, and he did so culpably - at least in the form of conscious negligence, and it would not be possible to pay for the damage otherwise, the employer can demand that employee participates in the compensation of the resulting damage. Thus, the following conditions must be met for the obligation to compensate damages:
- Violation of the obligation to notify of impending damage, or to take action against it;
- The occurrence of damage on the part of the employer;
- Causal connection between the occurrence of damage and the breach of duty;
- Fault at least in the form of conscious negligence;
- The damage cannot be compensated otherwise.
In the above cases, the employee's obligation to compensate for damage arises only secondarily: the employee was not the one who caused the damage himself (direct harm). The employee simply did not report or prevent the impending damage. Therefore, the perpetrator is primarily responsible for compensation of the damages.
Example: A neighbor threw away a cigatŕette butt while leaving the house where the employer is based. But he threw it in the dry grass, near the employer's parked vehicles. The grass began to smolder and burn, and the fire approached the vehicles. An employee saw this and knew that there was a risk of damage to the cars. Depending on the circumstances, he either had a duty to report the danger to his superior or a duty to take action. But he didn't do any of that - he was rushing home from work. Subsequently, the fire damaged the vehicles. Who is obliged to compensate for the damage? If the direct tortfeasor (the neighbor who caused the fire) were to be found, he would be liable to compensate for the damage. However, if the direct tortfeasor was not identified, the employee would be obligated to compensate the damage. But would he have to pay for all the damage?
No, he wouldn't. In such cases, the employee has an obligation to participate in compensation to the extent appropriate to the circumstances of the case. It takes into account, in particular, the circumstances that prevented the fulfillment of the obligation and the significance of the damage for the employer. The amount of damages is limited to 3 times the employee's average monthly earnings.
If the employee caused damage while averting imminent damage or danger, then he is not responsible for this damage. The exception would be cases where he intentionally caused the danger himself, or when turning away, he behaved disproportionately to the circumstances.
- Special Case - "Material Liability"
A special case of an employee's obligation to compensate for damage is so-called material liability. In Czech law, it is an obligation to compensate the deficit on entrusted values, and to compensate for loss of entrusted things. It differs from the "general liability of the employee" by the stricter conditions in relation to the employee, the obligation to compensate damages is:
- A material responsibility agreement (responsibility for entrusted values) was concluded;
- A deficit has arisen on entrusted values (on cash, goods, material stocks, etc.);
- The fault of the employee is assumed.
What is an agreement on material responsibility? It is an agreement by which the employee undertakes to take responsibility for the values entrusted to him by the employer and which the employee is obliged to account for. Such an agreement can only be concluded between the parties in Employment Relationship, DPP or DPČ (we talked about the DPP and DPČ here: Brno Expat Center Free Webinar). The agreement must be concluded in writing. It can only be concluded with an employee of full legal capacity who has reached the age of 18. The employee can be exempted from the obligation to compensate the damage if he can prove that the damage occurred completely (or partially) without his fault.
What are "entrusted values"? They are, for example, cash, valuables, goods, material stocks or other values that are subject to turnover or circulation. The employee has them personally for the entire time they are entrusted to him. So it is not, for example, tools, a car, office equipment; as they are not intended for turnover or circulation - these are "entrusted things" (see below).
E.g. if an agreement on Material Liability was concluded with an employee in the warehouse, this employee is responsible for any shortfall in the goods located there and at his disposal. However, as soon as the goods leave the warehouse (e.g. to the store), they cease to be within the scope of the employee's disposition. The goods are hereby no longer subject to the Material Liability Agreement; if there was a shortfall in these values, (this particular) employee would no longer be responsible for it.
Attention: The values for which the employee is responsible may not be directly stated in the Material Liability Agreement. The responsibility is not limited only to the values entrusted at the conclusion of the agreement. With the Material Liability Agreement, the employee assumes responsibility for the shortfall of any values that will be entrusted to him by the employer at any time after the conclusion of this agreement.
What about the loss of "entrusted items"?
For the loss of entrusted items, the conditions for the employee's obligation to compensate for damage are as follows:
- The employee has confirmed in writing the receipt of certain specific entrusted items from the employer, if applicable. An Agreement on Responsibility for Entrusted Items has been concluded;
- Damage occurred due to the loss of entrusted items (tools, protective work equipment and other similar items); and
- The fault of the employee is assumed.
Employees can be entrusted with things in practically unlimited quantities, always under their written confirmation. However, if the value of the items exceeds CZK 50,000, an agreement on responsibility for entrusted items must be concluded between the employee and the employer.
What is the Agreement on Responsibility for Entrusted Items? With this agreement, the employee undertakes to compensate the employer for damage in the event of the loss of entrusted items. Again, this agreement must be negotiated in writing, with an independent employee who has reached the age of 18. It is necessary that each item, the price of which exceeds CZK 50,000, be entrusted to the employee on the basis of an agreement on responsibility for the loss of the entrusted item.
Again, the employee is released from the obligation to compensate damages if he proves that the loss of the item entrusted to him by the employer occurred completely or partially without his fault.
Example from case law: An employee proves that he was not at fault for the loss of items entrusted to him for written confirmation, if, for example, he proves that he had the lost items in a locked cabinet at the workplace. He is also released from his obligation if he could not take care of the (lost) item as a result of a work-related accident. It would also be sufficient if it was found that, for example, the employer did not provide the employee with a lockable locker to store his belongings and as a result the entrusted items were lost.
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