Compensation for damage in the workplace: who is liable

Compensation for damage in the workplace is a topic that affects employers and employees alike. Damage may be caused to company property or to an employee’s health or, conversely, be caused to the employer by the employee’s conduct. The Labour Code sets out precisely who is liable and to what extent, so that the risk is not shifted onto one party alone. It is uncertainty about fault and about the amount of compensation that is often a source of tension between a company and an employee. Let us look at the basic rules.

Employee liability for damage

An employee is liable for damage caused by a culpable breach of their duties while performing work tasks. However, the extent of this liability is limited by law so that it does not place a disproportionate burden on the employee. For damage caused by negligence, compensation is limited to a certain multiple of average earnings.

• general liability for a culpable breach of duties
• a limit on compensation in cases of negligence
• full liability for intentional conduct

Agreement on material liability

A special case is the agreement on material liability (dohoda o hmotnej zodpovednosti), which can be concluded with an employee who handles cash, goods or other entrusted valuables. If there is a shortfall in these valuables, the employee is liable for it in full unless they prove that they were not at fault for the shortfall. This agreement must be made in writing.

Employer liability

The employer is also liable for damage suffered by an employee while performing work tasks, including occupational accidents and occupational diseases. It is likewise liable for damage to belongings the employee has put away at work. The employer can be released from liability only under the conditions laid down by law.

Occupational accidents and compensation

After an occupational accident, the employee is entitled to compensation for damage, which includes, for example, loss of earnings and compensation for pain. Some of these claims are usually covered by the employer’s statutory liability insurance. That is why it is important to record and report the accident properly.

• record and report the occupational accident
• document the cause and the circumstances
• claim compensation through the statutory insurance

How to proceed correctly

When damage occurs, the key is to establish its cause, its extent and the degree of fault. Compensation for damage in the workplace cannot be enforced arbitrarily, only in accordance with the law and in a provable way. As the compensation limits and conditions may change, always check the current conditions.

How to claim compensation from an employee

If the damage was caused by an employee, the employer cannot simply deduct the amount from their wage at its own discretion. The extent of the damage and the degree of fault must be discussed and, as a rule, an agreement on compensation for the damage should be concluded with the employee. Wage deductions are possible only to the extent permitted by law and under the conditions it lays down. If the employee refuses to pay compensation and no agreement is reached, the employer’s remaining option is to bring the claim before a court. Compensation for damage in the workplace is therefore always a matter of evidence and of following the correct procedure, not of an arbitrary decision. Good documentation from the outset significantly increases the chances of a successful claim.

Prevention is the best protection

The best solution is to prevent damage through clear rules, training and order in the workplace. Properly set up agreements and documentation will help you if a dispute arises. We will be happy to help you coordinate your HR and payroll administration so that your documentation for making claims is in order, so that you are not left without evidence in a dispute, and so that you can assert your claims through a correct and provable procedure that fully complies with the law and will stand up in court.

Related articles: Working time, breaks and attendance records, Non-compete clause in an employment contract, State contribution for training new employees.

Frequently asked questions

Up to what amount is an employee liable for damage caused by negligence?

For damage caused by negligence, compensation is limited by law to a certain multiple of the employee’s average monthly earnings. For intentional conduct, the employee is liable in full. Check the specific limits under the current legislation, as they may change.

When is the employer liable for damage?

The employer is liable mainly for damage suffered by an employee while performing work tasks, including occupational accidents and occupational diseases, and for damage to belongings the employee has put away at work. It can be released from liability only under the conditions laid down by law.