The problems of the Employer’s material Responsibility in Labour Law
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Abstract
The problems of the Employer’s material Liability in Labour Law are shortly discussed in this article. The general terms of material Liability in Labour Law, peculiarities of applying the laws of material Liability in practice are indicated. The separate cases of Employer’s material Liability are provided. The article is prepared under comparative method of study, analyzing the new Labour Code of Republic of Lithuania, issued in 2002. The questions of Employer’s material Liability are not analyzed in law doctrine enough. They also seemed to be actual in practice. The rulings of Juridical Board of Civil Cases Department of Supreme Court of the Republic of Lithuania dealing with Employer’s material Liability are provided. There are made conclusions at the end of the article, revealing problems of employer’s material Liability arising in practice.
The main aspect of the article is to observe institute of Employer's Liability methodically and to discuss the problems. Hereby, Employer's Liability shall be incurred due to a violation of law during which Employer causes damage to Employee through non-performance of work duties or by performing them unsatisfactorily. Liability shall be incurred when all the following conditions are present: 1) damage has been caused; 2) damage has been caused through illegal activity; 3) there is a causal relationship between an illegal activity and damage; 4) the offender is guilty; 5) the offender and the victim were in a labour relationship during the violation of law; 6) the resulting damage relates to work activities. The employer's liability shall be incurred where: 1) an employee is injured or dies or contracts an occupational disease unless he was covered by social insurance against accidents at work and occupational diseases; 2) damage is caused by damage to, destruction or loss of the employee's property; 3) property interests of the employee and other persons are violated; 4) an employee sustains non-property damage.
There was determined that in some cases Employer's Liability is regulated by labour law rules (i.e. breach of rules on the termination of an Employment Contract), in some cases by civil law rules (i.e. an employee sustains non-property damage). It should be mentioned that social insurance against accidents at work and occupational diseases is obligatory in Lithuania. In that case arises contradiction with main principal of liability that where damage is deliberate full damage must be compensated for. Another special case is that Employer shall compensate damage caused by the Employee to third persons when the employer acquires by the right of recourse due to the compensation of damage caused by an employee. Hereby, it could be situation that Employer will fail to recourse the compensation, because an employee must compensate all damage caused but not in excess of the amount of his three average monthly wages, with the exception of cases specified in Labour Code. One more interesting aspect – there is no judicial practice regarding cases of non-property damage in Lithuania.
The main aspect of the article is to observe institute of Employer's Liability methodically and to discuss the problems. Hereby, Employer's Liability shall be incurred due to a violation of law during which Employer causes damage to Employee through non-performance of work duties or by performing them unsatisfactorily. Liability shall be incurred when all the following conditions are present: 1) damage has been caused; 2) damage has been caused through illegal activity; 3) there is a causal relationship between an illegal activity and damage; 4) the offender is guilty; 5) the offender and the victim were in a labour relationship during the violation of law; 6) the resulting damage relates to work activities. The employer's liability shall be incurred where: 1) an employee is injured or dies or contracts an occupational disease unless he was covered by social insurance against accidents at work and occupational diseases; 2) damage is caused by damage to, destruction or loss of the employee's property; 3) property interests of the employee and other persons are violated; 4) an employee sustains non-property damage.
There was determined that in some cases Employer's Liability is regulated by labour law rules (i.e. breach of rules on the termination of an Employment Contract), in some cases by civil law rules (i.e. an employee sustains non-property damage). It should be mentioned that social insurance against accidents at work and occupational diseases is obligatory in Lithuania. In that case arises contradiction with main principal of liability that where damage is deliberate full damage must be compensated for. Another special case is that Employer shall compensate damage caused by the Employee to third persons when the employer acquires by the right of recourse due to the compensation of damage caused by an employee. Hereby, it could be situation that Employer will fail to recourse the compensation, because an employee must compensate all damage caused but not in excess of the amount of his three average monthly wages, with the exception of cases specified in Labour Code. One more interesting aspect – there is no judicial practice regarding cases of non-property damage in Lithuania.
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Please see Copyright and Licence Agreement for further details.
