19.08.2022 Labour law

[Poland] Labour Code – what is an employee’s material liability?


How does the Labour Code regulate the material liability of an employee? What are the types of liability? When can an employer pursue a claim for damages? To get answers to these and other questions, read the following article.

Employee material liability – what are the types?

In the Labour Code, the legislator has provided for two types of employee liability for damage caused to an employer while performing employee duties:

  • general liability – this is a general liability covering all employees,
  • liability for entrusted property – the employee is entrusted with the employer’s property under an ancillary agreement in order to account for or return the property.

General material liability – when?

The employee’s material liability under the general rules arises upon entering into the employment relationship, so there is no need for an additional agreement with an employee.

The employee’s general material liability includes:

  • damage caused unintentionally (limited liability),
  • damage caused by intent (full liability).

An employee is materially liable for damage caused to an employer if the damage was caused intentionally, i.e. caused by the culpable non-performance or improper performance of duties, but it is the employer’s responsibility to prove the damage and the employee’s fault.

In the case of intentionally caused damage, an employee is obliged to compensate for the full amount of the damage, taking into account the employer’s lost profits related, for example, to the downtime of the broken machine.

If, on the other hand, the damage is caused by an employee’s negligent non-performance or improper performance of his or her duties, the employee’s liability shall be limited and shall not exceed the amount of three months’ salary to which the employee was entitled at the date of the damage.

The employee’s three-month remuneration in such a situation shall be calculated according to the rules applicable to the determination of the cash equivalent for leave and without taking into account changes in the terms and conditions of remuneration or the level of remuneration components introduced after the date of the damage.

Liability for entrusted property – in what situation and who is responsible for what?

Entrustment means the handing over of property (e.g. equipment) to an employee on the basis of receipt of the item by means of a physical inventory or a handing-over inventory.

An employee may be entrusted not only with things, i.e. for example tools, objects, including personal protective equipment, work clothing and footwear, but also with money, securities or valuables.

Liability for entrusted property is divided into:

  • individual liability,
  • joint liability – several employees are jointly responsible for the property.

When damage is caused to entrusted property, an employee is liable for the full amount regardless of whether the damage was caused intentionally or unintentionally.

However, there are also cases in which an employee may be relieved of this liability. Such cases include circumstances beyond the employee’s control such as, for example:

  • theft by a third party,
  • insufficient security against outside access,
  • lack of proper work organisation.

Thus, in the case of theft of property by a third party, if there are independent circumstances, the employee entrusted with the property may discharge liability for the property in question.

Joint liability – when a joint entrustment agreement?

An employer may also entrust the custody of property to several employees. We then speak of a joint entrustment agreement. It can be concluded if the number of employees at the place of entrustment does not exceed:

  • for one-shift work – 8 persons,
  • for two-shift work – 12 persons,
  • for three-shift work – 16 persons.

However, it should be borne in mind that any change in the number of employees covered by joint material liability will require a new agreement.

Moreover, the employees with joint material liability shall be liable in the parts specified in the agreement. However, if it is found that the damage was caused in whole or in part by some employees, only the employees – the persons causing the damage – shall be liable for the damage in whole or in part for which they are responsible.

What is important is that the joint liability agreement for entrusted property ceases to apply when the employment relationship ends.

Employee material liability – information table

Type of liabilityWho bears the burden of proof?  Up to what amount is the employee liable?  Is an additional agreement required?
  General liability – intentional fault   Intentional fault – the employee violates his/her duties, or wants to cause damage to the employer’s property, or foresees the possibility of causing damage and accepts it  The employer bears the burden of proving both the damage and the fault of an employeeUp to the full amount of the damage including the employer’s lost profitsNo, it arises when the employment relationship is established
General liability – unintentional fault   Unintentional fault – unintentional failure to perform or improper performance of dutiesThe employer bears the burden of proving both the damage and the fault of an employee   If an employee, acting unintentionally, has caused several damages, each of these damages must be proven separately.  Up to the amount of three months’ remuneration to which the employee was entitled at the date of the damage.   Three months’ remuneration – shall be calculated in accordance with the rules applicable to the the calculation of the cash equivalent for leave, without taking into account changes to the terms and conditions of remuneration or the amount of remuneration components introduced after the date of the damage.  No, it arises when the employment relationship is established
Liability for entrusted property   The proper entrustment of property consists of its handing over.There shall be a presumption of fault on the part of the employee  Up to the full amount of the damage including the employer’s lost profits   An employee shall be liable for damage to entrusted property in full, no matter whether the damage was caused intentionally or unintentionally.Yes, the employee’s consent to the entrustment of property contained in the employment contract or in a separate agreement on acceptance of entrusted property

HR Outsourcing – find out how we can help!


Discover our services

Want to stay up to date?
Subscribe to our newsletter!

Full version

Contract Administration Sp. z o. o.

Hrubieszowska 2
01-209 Warsaw
Poland

+48 22 295 32 00
contact@ca-staff.eu

NIP: 526-001-29-88, KRS: 0000028831,
REGON: 012548510. The District Court for the
capital city of Warsaw, XIII Commercial Division

Mapa