Czech Republic: Employer’s Obligation to Compensate Damage According to the Czech Labour Code

Author: Klára Šléglová

The Czech Labour Code widely reflects one of the basic principles of employment law relationships, which provides for special statutory protection of the employees. Alongside the provisions on grounds for termination or occupational health and safety protection, there is also a regulation of employers’ liability for damage. While employers are entitled to organise, manage, and supervise the work of their employees, this authority is accompanied by a corresponding obligation to provide appropriate compensation for damage arising in the course of work performance.

 

General Liability

If the conditions for the special types of liability (as described in the following paragraph) are not fully met, the employer is liable at least according to the general type. The general type of liability means that the employer is obliged to compensate for the damage caused to employees whilst they were fulfilling work tasks or in direct connection therewith. It also includes the damage inflicted by other people by breach of legal obligations or intentional immoral conduct. Employers compensate for actual damage or additionally also lost profit in cases of intentionally caused damage. However, employers do not have to compensate for the damage that occurred whilst employees were using means of transport or tools that were not previously approved by the employer.

 

Special Liability: Aversion of Damage and Liability for Damage Caused to Employees’ Deposited Items

Employers are obliged to compensate for material damage incurred by their employees whilst averting imminent damage to the employer or danger to life and health. This provision will not apply if the damage occurred due to the employees’ intentional conduct or if they acted in a way that was not commensurate with the circumstances.

Furthermore, the Czech Labour Code holds employers liable for damage to items that employees usually bring to work and which are deposited at a place intended for this purpose whilst employees perform work. However, if employees bring unusual items to work and the employer does not accept them into special custody, damage to those things shall be compensated by the employer only up to the amount of CZK 10,000 (approx. EUR 413).

 

Liability for Damage Arisen due to Accidents at Work and Occupational Diseases

The Czech Labour Code enshrines the right of employees to receive compensation for damage they have suffered due to work accidents or occupational disease. This liability differs from others, because employers are required to have insurance for these cases. Essentially, an insurance company satisfies the claim for damages on behalf of the employers, subject to statutory conditions. It is possible for employers to not be held liable at all, if the employees culpably violated regulations relating to occupational health and safety or if they were drunk or under influence of drugs. Moreover, employers can be partially absolved of the liability if they prove that the employee acted recklessly or if one of the reasons for full release mentioned above contributed to the damage.

Key Action Points for Human Resources and In-House Counsel

• Employers must compensate for the damage their employees have suffered whilst fulfilling work tasks and whilst averting damage directly threatening the employer.
• Employers are liable for damage caused to the employees’ unusual things that were not taken into special custody only up to the amount of CZK 10,000 (approx. EUR 413).
• For specific reasons attributable to the employee, employers can be released fully or partially from the obligation to compensate damage due to work accidents and occupational diseases.