Labour law

When does an employee carry material liability?

Huquqchi legal team

An employee answers for the direct actual damage caused to the employer. The general rule is limited liability within the average monthly wage. Full liability applies only in the cases the law names, for example when a written full liability agreement exists, or when the employee caused the damage deliberately.

The conditions of liability

Liability for damage arises only when four conditions are present together: direct actual damage, unlawful conduct of the employee, a causal link, and fault.

Limited liability

The general rule is that the damage is compensated within the average monthly wage. Under article 347 of the Labour Code, the employer recovers an amount that does not exceed the average monthly wage by an order issued within one month from the day the damage was found. If the amount is larger, or if the one month passed, recovery is made only through the court.

Full liability

Full liability applies in the cases the law lists — for example, when a written full material liability agreement was made with the employee, or when the employee caused the damage deliberately.

What to check

Legal sources

Legal basisLabour Code, article 340 Legal basisLabour Code, article 342 Legal basisLabour Code, article 337

This article gives legal information, not legal advice. For your own situation, consult a qualified lawyer.