Act No. 71 / 1958 Coll.
Law on compensation for damage caused by an employee in breach of employment obligations
Valid
Effective from 10.11.1958
71
Law
of 17 October 1958
on compensation obligations for damage caused by an employee in breach of employment obligations
The National Assembly of the Czechoslovak Republic decided on the following Act:
The universal development of property in socialist property, which is constantly multiplied during socialist construction and represents great values that make up the wealth of our entire society, is a prerequisite for a constant increase in the material and cultural level of all workers. Protecting this property is in the interests of all workers. It is therefore also in the interests of all workers that those who damage this property should be responsible for their actions. Our company therefore pays greater attention to the education of workers to the right proportion to socialist ownership, as well as to the creation of conditions that allow the prevention of damage to this property. This is also the case for the liability for damage caused by employees in breach of their obligations under the employment contract.
Liability of the employee to the undertaking
(1) If a staff member has been negligent in the performance of his employment by violating his obligations under this law, he shall be liable for it.
(2) The undertaking is obliged to prove the employee's fault unless otherwise specified.
(1) The management of the undertaking shall be obliged to create working conditions for staff to enable it to carry out its duties correctly and to be convinced by continuous checks on how it fulfils those obligations. The staff member shall report to his superior as soon as he finds them; if he can remove them himself, he is obliged to do so.
(2) If the damage was also caused by a breach of the management's obligations, the undertaking shall bear the damage in proportion. The compensation for damage suffered by the undertaking shall be subject to the obligation of the undertaking to require the employee who caused it.
Responsibility for the values entrusted to the account
(1) If the staff member, by written contract, assumed responsibility for the cash and price involved, material stocks, goods and other accounting values, he shall be responsible for the deficit incurred. Such liability shall be waived in whole or in part if it proves that the deficit has been created in whole or in part without fault in particular by the management of the undertaking not creating working conditions which would enable the staff member to perform his duties correctly. However, this contract cannot be concluded with minors.
(2) A contract referred to in paragraph 1 may also be concluded jointly by several staff members.
(3) If the staff member finds that he does not have the necessary working conditions, he shall immediately notify the failure to his superior. If you can remove it yourself, it is obliged to do so. For employees jointly responsible, it is sufficient for them to fulfil those obligations.
(4) The head of the competent central office may, in agreement with the central committee of the relevant trade union, determine the functions for which the conclusion of a written contract referred to in paragraphs 1 and 2 is necessary for the performance of such contracts.
(5) If the staff member has not assumed responsibility for the values entrusted to the bill by written contract, he shall be liable for the damage under the provisions of Sections 2 and 6.
Responsibility for the articles entrusted
(1) The staff member is responsible for the loss of tools, protective clothing and other items entrusted by the management to the staff member for his written confirmation, unless he proves that he has not caused the loss.
(2) If the staff member has not confirmed in writing that the items referred to in paragraph 1 have been taken over, he shall be responsible for their loss under the provisions of Sections 2 and 6.
Scope of compensation
(a) General
(1) If the employee corresponds under this law, he is obliged to compensate the company for the real damage, not what has gone wrong.
(2) Where more than one employee is responsible for the damage suffered, the amount of compensation shall be determined separately for each undertaking according to the extent of its fault. The court shall not be bound by the pleas of the parties when deciding on the amount of individual employees' shares in the compensation.
(3) The amount of compensation may not exceed three times its average monthly earnings for an individual employee.
In justified cases, the amount of compensation may be determined at a lower rate than the actual damage, or three times the average monthly earnings. However, the amount of compensation shall be at least one third of the actual damage and, if such damage exceeds three times the average monthly earnings of the staff member, shall be at least equal to the average earnings of the staff member per month. In determining the amount of compensation, account shall be taken, in particular, of the employee's relationship with work and social ownership, the degree of guilt, the social importance of damage, the personal characteristics of the employee and his economic circumstances.
(b) For the values entrusted to the account and for the articles entrusted
A staff member who has assumed responsibility for the values entrusted to account (§ 4 (1)) or for the articles entrusted (§ 5 (1)) shall be obliged to make good the actual damage, if he is responsible for it, in full. The actual damage here is the normal price. Paragraph 6 (3) does not apply in these cases.
(1) If more than one employee has made a joint undertaking (Paragraph 4 (2)), they shall all be responsible for the deficit created unless one of them proves that the deficit was created without fault. The share of compensation for individual employees shall be determined on the basis of the proportion of their gross earnings settled over the period from the last inventory to the date of the deficit finding, double counting the earnings of the manager and his representative.
(2) Where an inventory has been made or a deficit detected during a calendar month, the gross earnings referred to in paragraph 1 shall include the gross earnings charged to the staff member for the whole calendar month in which the most recent inventory was made and the whole calendar month in which the deficit was detected.
(3) However, the gross earnings referred to in paragraphs 1 and 2 shall not include the benefits paid at the time of leave for the recovered and the compensation for the loss of earnings which have been settled by the staff member during the relevant period.
(4) The amount of the compensation for individual staff members, with the exception of the manager and his representative, may not exceed an amount equal to the average earnings of each staff member per month. If the total damage is not paid for the shares thus calculated, the manager and his representative shall be obliged to pay the remainder, in accordance with the proportion of their gross earnings that has been paid to them during the periods referred to in paragraphs 1 and 2.
If the staff member has assumed responsibility for the values entrusted to the bill by written contract or for the articles entrusted to him by written confirmation, only the court may reduce the damages in accordance with the principles set out in Section 7.
Compensation for damage caused by defective work
Special provisions issued under the rules governing the management of the state wage policy apply to compensation for damage caused by defective work.
Application of compensation
(1) The amount of compensation shall be determined by the management of the undertaking after consultation with the trade union and employee racing committee and shall be notified to the staff member no later than one month after the date on which the damage was detected and the person causing the damage.
(2) If the damage was caused by the head of the undertaking or his representative, the amount of compensation shall be determined by the superior body in agreement with the trade union's higher authority within one month of the date on which it found the damage and the person causing the damage. The same applies if the damage was caused jointly by the manager and his subordinate employee.
(1) If the staff member recognises an obligation to compensate for the damage to a specified amount and agrees with the management of the undertaking on the amount of the reductions, the damage shall be covered by wage reductions.
(2) Recognition of the undertaking and the agreement on the amount of precipitation must happen in writing.
(3) Recognition of the undertaking shall be void if the determination of the amount of compensation has not been discussed with the competent trade union authority.
(1) Reductions may be carried out by the management of the holding not earlier than from the payment period following the agreement concluded.
(2) Deductions from the remuneration for damages may be made, including any reductions for other reasons, only within the limits laid down by the rules on the execution of the salary.
The staff member and the management of the undertaking may request a new adjustment of the reductions if the circumstances which were decisive for determining the amount of the deductions change substantially.
Provisions common and final
(1) If the staff member has been intentionally or intoxicated, he shall be responsible for the damage under the Civil Code.
(2) A staff member shall not be liable for damage caused in extreme need to avert from himself, his co-workers or from an undertaking a danger directly imminent.
Where a company is referred to in this Act, this means another legal person, as well as any economic and budgetary organisation.
The average monthly earnings shall be calculated on the gross earnings that have been cleared by the staff member for the last 6 calendar months prior to the determination of the damage. In doing so, one-off rewards are disregarded.
(1) In accordance with the provisions of this Act, liability for the values entrusted to the bill and for the articles entrusted, established by a written contract concluded before the date of entry into force, shall be assessed from the date of its effectiveness.
(2) The provisions of this Act shall also apply to compensation for damage incurred before the date of its application, unless it has been decided by a final court or an agreement has been reached.
This law shall not apply to members of the armed forces in active employment or to members of the armed corps of the Ministry of the Interior.
From the date of the entry into force of this Act, all provisions contrary to this Act, in particular Sections 18, 23 to 25 of the Government Decree No. 120 / 1950 Coll., on the rights and obligations of civil servants, on proceedings concerning their employment and arbitration, and Decree No. 201 / 1953 Ú. l. and No. 239 / 1953 Ú. v., on the material liability of workers of trade for supplies, as amended by Decree No. 61 / 1955 Ú. l.
This Law shall take effect from the date of its publication; it shall be carried out by all members of the Government.
Novotný v. r.
Fierlinger v. r.
Broad v. r.
Dolan v. r.
Kopecký v. r.
Ing. Jankovcová v. r.
Bark v. r.
Ing. Shimonek v. r.
Dr Kylý v. r.
Plojhar v. r.
Dr. Nove v. r.
Bakuľa v. r.
David v. r.
Děuriš v. r.
Krajčir v. r.
Kromir
Machachová v. r.
Dr. Unedible v. r.
Polack v. r.
Tesla v. r.
Uher v. r.
Lamb
Jonah v. r.
Reitmajer v. r.
Dr Skoda v. r.
Ing. Black v. r.
Dvořák v. r.
Dr Kahuda v. r.
Colonel General Lomský v. r.
Dr Neuman v. r.
Ouzký v. r.
Pospíšil v. r.
Ing. Púčik v. r.
Dr. Vlasák v. r.
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Regulation Information
| Citation | Act No 71 / 1958 Coll., on obligations to make good damage caused by an employee by a breach of employment obligations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.11.1958 |
|---|---|
| Effective from | 10.11.1958 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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