In the course of working, if employees cause damage to the company with the intentional fault or unintentional fault, they must have the liability for compensation. So where do the employees have to compensate for the damage?
According to the Article 130 of the Labor Code 2012, there are 02 cases where the employees must compensate the company for the damage:
- An employee who causes damage to tools and equipment or the assets of the employer shall pay compensation in accordance
- An employee who loses tools, equipment or assets of the employer or other assets assigned to him/her by the employer, or uses supplies in excess of the permitted norms shall compensate
How much compensation?
According to the Article 32 of Decree 05/2015/ND-CP, the employee must pay compensation according to the state of damage but not exceeding the actual value:
- No more than 3 months’ wage: causing damage to tools and equipment valued at least 10 months’ regional minimum wage announced by the Government and this damage is applied at the employee’s workplace and this compensation shall be deducted monthly from his/her wage.
- Whole or a part compensation in accordance with the market price: In one of the following cases
+ An employee, due to negligence, causes damage to tools and equipment valued at no more than 10 months’ regional minimum wage announced by the Government and this damage amount is applied at the employee’s workplace,
+ An employee causes loss of tools, equipment or assets of the employer or other assets provided by the employer
+ An employee consumes materials in excess of the permitted level defined by the employer.
- Compensation upon the agreement: If the employee causes any damage as prescribed and has been bound by the liability contract with the employer, such employee must compensate according to the liability contract.
- No compensation: In case the damage is caused by a natural disaster, conflagration, enemy-inflicted destruction, epidemic diseases, calamity or other objective events which are unforeseeable and irremediable and every necessary measure has been taken to full ability.
Liability for compensation to the company when causing damage is indispensable, not only protecting assets for employers but also ensuring, maintaining order and discipline in each company.
Please contact us for detailed advice.
T2H Law Liability limited company
Head office: G4-4A, Dormitory 708, Lien Ninh, Thanh Tri, Hanoi
Branch office: 20N7A Nguyen Thi Thap, Nhan Chinh Ward, Thanh Xuan District, Hanoi.
Phone: 0242 242 9900 – 0989 656 682
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