What are employees liable for?

Some employers try to minimize their losses at the expense of their employees and sign liability agreements with them. However, such agreements are not always legally binding and it is not possible to collect money for the damage caused from the employees' salaries. In which cases the signing of a liability agreement will be considered legal and when you can claim compensation, read this article.

What are employees liable for?

Article 130 of the Labor Code states that employees may be held financially liable for damage caused to the company if the following conditions are met at the same time:

• the employee has violated his or her employment duties;
• the employee caused direct actual damage;
• the employee is guilty of acts or omissions;
• there is a direct link between the damage and the employee's actions (or inaction).

Let us consider each point in more detail.

In order to hold an employee liable, there must be a clear breach of employment duties. To understand whether such a violation has occurred, all of the employee's duties must be set forth in the employee's job description or employment contract. At the same time, the employee must familiarize himself with his duties and sign the agreement upon hiring.

Financial liability applies to employees only during working hours. Before or after the end of the working day, the employee is relieved of his/her work duties and is not responsible for the safety of the company's property or for the materials transferred to him/her for storage.

In order to determine whether an employee has caused direct actual damage, it is necessary to understand whether the damage can be attributed to one of the following categories:

• material assets have been lost, destroyed, damaged, spoiled, or are missing;
• the damage was caused by the illegal sale of goods at a reduced price;
• the expenses were incurred due to illegal payments or payments were unjustified;
• expenses were incurred due to excessive payments to the employee;
• a penalty, fine, or penalty was paid in favor of the counterparty or the state;
• the employee caused damage to another organization or business entity and the employer paid for it;
• loss of income due to the failure to collect debts from the debtor due to the expiration of the statute of limitations.

The next prerequisite for holding an employee liable is establishing his or her fault. The employee's fault is determined by the employee's intent or negligence. In order to recover damages, an employee does not have to intentionally damage something; inaction is just as good a basis for compensation. In any case, the connection between the damage and the employee must be direct.

In what cases is an employee fully liable?

An employee shall be fully liable for damage caused to the company in the following cases:

• an agreement on full liability was concluded with the employee in accordance with Article 135-1 of the Labor Code;
• the employee accepted the property for reporting under a one-time power of attorney;
• the employee has caused damage that is punishable by criminal law;
• the employee caused damage while intoxicated;
• the employee intentionally destroyed or damaged the company's property issued to the employee for use;
• the employee is fully liable on the basis of his or her employment duties;
• the damage was not caused in the performance of labor duties.

Employees can be compensated for damage on the basis of a full individual liability agreement. However, to enter into such an agreement, two conditions must be met simultaneously:

1. The position of the employee with whom the agreement is concluded is included in the List of Positions and Jobs for which a liability agreement can be concluded. Despite the fact that the list was adopted back in the Soviet era, it is still relevant today.
2. There is a direct link between the employee's job responsibilities and the material assets transferred for storage, processing, sale, etc.

In practice, employers often enter into liability agreements with employees whose positions are not included in the List.

Actions of the employer in case of damage to the company, if:

1. A liability agreement has been concluded:

• Issue an order to establish a commission to determine the causes and amount of damage;
• To demand an explanatory note from the guilty person;
• Stow the bill of sale;
• Issue an order to compensate the guilty employee for the amount of damage.

     2.  No liability agreement has been concluded:

• Issue an order to establish a commission to determine the causes and amount of damage;
• To demand an explanatory note from the guilty person;
• If the employee refuses to give an explanation, draw up a corresponding act;
• Stow the bill of sale.

When does an employee have limited liability?

Depending on the amount of damage, liability may vary, but if a direct link is established between the damage and the employee's actions or inaction, the employee will still have to be held liable.

Types of losses:

• damage in connection with the destruction or damage to the company's property;
• expenses for the purchase or restoration of property caused by the employee to third parties;
• lack of cash or property values of the company;
• damage to company materials and tools, office equipment, and movable property;
• payment of fines.

It is forbidden to recover from employees only the company's lost profits, while other expenses can be recovered.

Depending on the type of damage, damages may be recovered from the employee either in the amount of the employee's average earnings or in full.

Full compensation for damages can be claimed only in certain cases:

• the perpetrator is the head of the organization;
• a full liability agreement was concluded with the guilty employee;
• the shortage of valuables occurred under a one-time document;
• the perpetrator is an employee of a post office and has access to mail;
• the damage was caused in connection with the commission of a criminal offense or administrative offense, and there is a court act;
• the damage was caused intentionally;
• the damage was caused under the influence of alcohol or drugs.

In all other cases, the employee cannot be held responsible for all losses.

You can claim damages within one month from the date the amount of damages is determined. If this period is missed, any further claims will be illegal.

Which positions involve financial responsibility?

Despite the fact that the List of Positions was adopted back in the USSR, it is still relevant to this day, and a new list has not yet been drawn up.

Financial liability is provided for employees holding such positions:

• cashiers, senior cashiers, cashiers - controllers, controllers, senior controllers, other employees performing the role of a cashier,
• storekeepers, warehouse managers and their deputies, heads of storage rooms;
• catering managers and their deputies, production managers, hall administrators and senior administrators;
• superintendents and commandants responsible for the storage of material assets;
• supply managers, freight forwarders.

In addition to specific positions, financial liability applies to employees performing specific types of work:

• accepting money and payments from the public and paying out money through the cash desk;
• acceptance for storage of material assets in warehouses, storage rooms, cloakrooms and their release;
• sale of goods and products regardless of ownership.

Collective liability may arise for the following activities:

• performing cash transactions;
• acceptance, release and storage of material assets;
• sale of goods and products regardless of ownership;
• acceptance, storage, delivery and delivery of baggage, postal items and other material assets.

The procedure for compensation for damage

Compensation for damage in an amount not exceeding the employee's average earnings is made by order of the manager. This is done within two weeks from the date of the damage and at least seven days after the employee is notified of the penalty.

If the employee does not agree to compensate for the damage, then the labor dispute is resolved with the involvement of the court.

Why can't you recover money for damages?

It is prohibited to collect compensation:

• if the loss is attributable to normal production risks;
• for the potential profit not received by the company;
• for damages if the employee was in a state of emergency.