Expert advice

Employee Liability for Damage in Poland: Limits and Recovery

24.10.2026

Employee liability for damage in Poland is a statutory mechanism under which an employee may be required to compensate an employer for loss caused by the culpable non-performance or improper performance of employment duties. The rules are primarily set out in Articles 114-127 of the Polish Labour Code and differ significantly from ordinary civil liability rules. [1]

For employers, these rules affect the ability to recover losses caused by operational errors, breaches of procedures, missing property or misconduct. For employees, they establish important protections, including a general cap on compensation for unintentional damage.

When does employee liability for damage arise in Poland?

Under Articles 114 and 116 of the Labour Code, employee material liability requires several elements. The employer must demonstrate that damage occurred, that the employee breached an employment duty, that the employee was at fault, and that there is an adequate causal link between the breach and the loss. The employer also bears the burden of proving the circumstances justifying liability and the amount of damage. [1]

The recoverable amount is generally limited to the employer’s actual loss. Lost profits are not recoverable from an employee in cases of unintentional damage. Article 115 of the Labour Code limits liability to the normal consequences of the employee’s conduct. [1]

This distinction is commercially relevant. A poorly documented claim may be difficult to enforce, particularly where several employees had access to the relevant process, equipment or assets.

Three-month remuneration cap for unintentional damage

In the standard model of employee liability for damage in Poland, compensation for unintentional damage cannot exceed the equivalent of three months’ remuneration due to the employee on the date the damage was caused. This three-month remuneration cap is established by Article 119 of the Labour Code. [1]

The cap applies even where the employer’s actual loss is higher. For example, if an employee negligently damages machinery or makes an operational error resulting in a significant loss, recovery may still be limited to three monthly salaries.

Where more than one employee caused the damage, each person is liable according to the degree of fault and contribution. If those proportions cannot be established, liability is divided equally. This follows from Article 118 of the Labour Code. [1]

Three exceptions and qualifications to standard employee liability

1. Intentional damage: employee’s full liability

An employee who intentionally causes damage is liable for the full amount of the loss under Article 122 of the Labour Code. This may include both actual loss and lost profits. [1]

Intentional conduct requires more than negligence or serious carelessness. The factual circumstances must support a conclusion that the employee intended to cause damage or at least accepted the likelihood of causing it. In practice, allegations of intentional conduct should be assessed carefully, particularly where they may also lead to disciplinary action, criminal proceedings or reputational consequences.

2. Entrusted property liability in Poland

Different rules apply to property properly entrusted to an employee with an obligation to account for or return it. Under Article 124 of the Labour Code, this may include money, securities, valuables, tools, instruments, protective equipment, work clothing and footwear, as well as merchandise or similar items. [1]

Employee material liability rules for entrusted property may result in full liability for the shortage or loss. However, the employee may avoid liability by proving that the damage occurred for reasons beyond the employee’s control, including the employer’s failure to provide conditions enabling proper safeguarding of the property.

For a business, clear documentation is strongly advisable. The entrustment should identify the property, its value, the employee responsible and the conditions of custody. Informal access to company assets does not automatically create the statutory regime for entrusted property.

3. Employer’s operational risk remains with the employer

An employee is not liable for damage to the extent that the employer or another person contributed to it. Moreover, the employee does not bear the risk associated with the employer’s business activity and is not liable for damage resulting from actions taken within the limits of permissible risk. These exclusions are set out in Article 117 of the Labour Code. [1]

For example, an employer cannot transfer ordinary market losses, poor business decisions, inadequate staffing or defective internal procedures to an employee simply because the employee participated in the relevant process.

Recovering damages from an employee in Poland: practical steps

Before commencing recovery action, an employer should secure evidence and assess whether the statutory conditions are met. A proportionate internal review will usually include:

identifying the damage and calculating the actual loss;
preserving documents, correspondence, system logs and witness evidence;
confirming the employee’s duties and applicable internal procedures;
determining whether the damage was unintentional, intentional or related to entrusted property;
assessing any contribution by the employer, third parties or organisational deficiencies; and
considering an agreement on voluntary repayment where legally and commercially appropriate.

Claims for compensation for damage caused by an employee through non-performance or improper performance of duties become time-barred one year after the employer learned of the damage, but no later than three years after the damage occurred. This time limit also applies where the employee caused the damage intentionally. Article 291 of the Labour Code provides the relevant framework. [1]

Deduction from salary for damage

A deduction from salary for damage cannot normally be made unilaterally based only on an employer’s internal finding. Article 87 of the Labour Code permits certain statutory deductions, including amounts enforced under an enforceable title. Other deductions require the employee’s written consent under Article 91. [1]

Accordingly, an employer should not assume that a damage report, disciplinary decision or repayment request permits automatic deduction from salary. Depending on the factual situation, recovery may require a settlement together with written consent to the deduction, or a court judgment followed by enforcement.

This is informational material, not legal advice. The legal assessment depends on the evidence, the type of damage, the wording of employment documentation and whether separate criminal or compliance issues are involved.

For a fact-specific assessment of employee liability, evidence preservation and recovery options, contact us at Lawyersinpoland.com by Kopeć & Zaborowski.

FAQ – Employee Liability for Damage in Poland

Is an employee always liable for damage caused at work?

No. The employer must prove damage, employee fault, a breach of duties and a causal link. The employee is also not liable for losses resulting from the employer’s ordinary business risk.

What is the maximum compensation for unintentional damage?

For unintentional damage, compensation is limited to actual loss and cannot exceed three months’ remuneration due on the date the damage occurred, pursuant to Article 119 of the Labour Code.

Can an employer recover full damages from an employee?

Yes, but only in defined situations. Full recovery may apply where damage was caused intentionally or where property was properly entrusted to the employee, with an obligation to return it or account for it, and the conditions under Article 124 of the Labour Code are met.

Can an employer deduct damage compensation from salary?

Not automatically. Deductions must comply with Articles 87 and 91 of the Labour Code. In many cases, the employee’s written consent or an enforceable legal basis is required.

Does an employee have liability for missing company equipment?

Liability depends on the circumstances. Full liability may arise where equipment was properly entrusted with an obligation to return or account for it. Otherwise, the standard rules and the three-month cap may apply.

How long does an employer have to bring a claim?

Generally, the claim becomes time-barred one year after the employer learned of the damage, and no later than three years after it occurred. The same limitation periods apply to damage caused intentionally by an employee in connection with the non-performance or improper performance of employment duties.