An employee convicted of an intentional offence of abuse of trust must fully redress the damage caused to the employer | PRO HR Compliance

2022.07.07

The offence of abuse of trust involves a failure to perform a duty or misuse of authority granted that resulted in property damage to the organization.

A final conviction of an employee for this act in a criminal proceeding is significant in the compensation process between the employer and the employee.

If the offence of abuse of trust is committed intentionally, the employer may seek full compensation from the employee in a civil action.

A civil court is bound by a criminal judgment to the extent that it establishes the fact that a specific offence was committed and the circumstances of the offence (e.g. the time, the place of commission and, most importantly, the actions of specific persons).

The Supreme Court  has held that when an employee is convicted for an intentional offence of abuse of trust, a civil court examining the issue of damages has no way to determine whether such employee's actions were intentional.

As a result, Article 122 of the Labour Code will apply in this type of case, according to which an employee who caused damage intentionally is obliged to compensate for it in full.

According to the Supreme Court, in such a situation, the employer is only required to prove that the damage caused by the offence has not been reduced or repaired. 

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