Compensation for damage in employment represents one of the fundamental mechanisms of legal protection for employees who have suffered harm during or in connection with the performance of their work. This area covers situations in which an employee, due to their legal and economic subordination to the employer, has suffered material or non-material damage as a result of unlawful conduct, deficiencies in work organization, or unsafe working conditions.
The right to compensation for damage in employment is primarily regulated by the Law on Obligations, the Labour Law, and the Occupational Safety and Health Law, as well as by special regulations governing workplace harassment, prohibition of discrimination, and the protection of whistleblowers. Case law in this field is diverse, as each case is assessed according to its specific facts and circumstances; therefore, familiarity with judicial practice is of great importance.
Employer’s Liability
An employer is liable for damage suffered by an employee both as a result of legal acts and factual actions. Legal acts that may give rise to employer liability include unlawful termination or an unlawful amendment to an employment contract, in which case the employee is entitled to compensation for lost wages or the difference in salary.
In addition, the employer is liable for damage resulting from workplace harassment, discrimination, or detrimental treatment of a whistleblower. In such proceedings, the law provides for special rules regarding the burden of proof, which is often placed on the employer.
Factual actions of the employer—namely acts and omissions related to work organization, occupational safety, and health—are a frequent basis for liability. The consequences of such omissions most commonly manifest as workplace injuries.
Employer liability is not limited exclusively to employees in formal employment relationships. An employer may also be liable for workplace injuries or occupational diseases affecting persons working outside an employment relationship, as well as one-day or occasional workers, provided that a relationship of subordination exists—for example, where the employer provides work equipment and organizes the work process.
-Example from Practice
If you were to engage a person to chop wood, give them specific instructions during the performance of that work, and provide them with work equipment such as an axe, this could be considered a relationship of subordination at work. In such a situation, regardless of the fact that the person is not formally employed, employer liability for damage may arise in the event of a workplace injury. The key elements are issuing instructions, controlling the manner of work, and providing the means of work.
Presumed Liability of the Employer
In cases of workplace injury, the law proceeds from the presumption of employer liability. First, subjective liability is examined—that is, whether the employer failed to fulfill the obligations prescribed by the Occupational Safety and Health Law. These obligations include taking preventive measures, organizing a safe working environment, adopting a risk assessment act, conducting genuine and high-quality employee training, supervising the work process, and sanctioning non-compliance with safety rules. Engaging a third party to provide employee training does not release the employer from liability if the training was merely formal.
Strict Liability of the Employer and Hazardous Activities
If the employer’s fault cannot be proven, the court considers the existence of strict (objective) liability, particularly in cases where work is performed using dangerous objects or within the scope of a hazardous activity. In such situations, the employer may be liable even without fault, and bears the burden of proving the existence of grounds for exclusion or reduction of liability. The employer may also be jointly and severally liable with a third party that contributed to the occurrence of damage, as is often the case on construction sites where occupational safety and health regulations have not been observed.
Exclusion and Reduction of Employer Liability
Employer liability for workplace injury may be excluded or reduced only exceptionally. This is possible if it is proven that the damage occurred solely as a result of the employee’s actions that the employer could not have foreseen or prevented, provided that the standards of work, adequate training, supervision, and sanctioning had previously been ensured. Courts do not accept the argument that the employee “could have refused to work,” bearing in mind the employee’s subordination and economic dependence.
An employee who has suffered damage has the right to claim compensation for non-material damage, including compensation for physical pain, fear, and mental anguish due to reduced life activity, disfigurement, or violation of personal rights. In addition, the employee may claim compensation for material damage, such as lost wages and an annuity in the event of reduced working capacity, regardless of whether the reduction is permanent or temporary.
Employee Liability for Damage Toward the Employer
On the other hand, an employee may also be liable for damage caused to the employer, but only under conditions prescribed by law. The employee is liable for intent and gross negligence, but not for ordinary negligence. The employer is required to determine the damage in an internal procedure beforehand, which constitutes a prerequisite for initiating court proceedings. In certain cases, the employer has the right of recourse against an employee who intentionally or through gross negligence caused damage to a third party.
The Importance of Professional Legal Assistance in Compensation Disputes
Disputes concerning compensation for damage in employment are legally complex proceedings, as they require detailed determination of liability, causation, and the extent of damage. Therefore, professional legal assistance from an employment law attorney is of crucial importance for the protection of employees’ rights and the proper conduct of court proceedings.
For a more comprehensive understanding of this topic and its practical implications, in the next text we address occupational diseases and invite you to read it.
