The Law of Contract and Torts and Liability for damage

Liability for damage of enterprises and other legal persons to third party

Liability for damage of enterprises and other legal persons to third party shall be regulated by the provisions of articles from 170 to 172 of The Law of Contract and Torts.

Liability for damage of enterprises caused by an employee while working or in relation to work, to a third person and liability of a legal person for injury caused by its body shall be regulated by the provisions of The Law of Contract and Torts.

Liability for damage caused by an employee while working or in relation to work to the enterprise where it works as well as liability for damage suffered by employee while working or in relation to work is governed by regulations in the field of labor law.

Liability for damage of enterprise caused by an employee while working or in relation to work to a third person

Liable for damage caused by an employee while working or in relation to work, to a third person shall be the enterprise at which the employee was employed at the moment of causing the loss or injury, unless it is proved that the employee, in given circumstances, had proceeded as he should have.

Failure of the employee ’’as he should have’’ represent such behavior from which resulted damage to a third party, which can be attributed to the fault of the employee and through him of the fault of the enterprise.

A enterprise paying damages to a person who has suffered injury or loss caused by an employee, wilfully or by gross negligence, shall be entitled to recover from such employee the amount paid. That right shall expire six months after the payment of damages.

A person sustaining loss shall also be entitled to demand recovery directly from the employee, if he caused the damage wilfully. In this case there are two pests:

  • enterprise and
  • employee, and a person sustaining loss can choose from whom to demand compensation for the caused damage.

Injurious action should be action of the employee which he had taken while working or in relation to work.

Provisions of the Article 170 of The Law of Contract and Torts, which regulate responsibilty for injury of enterprise, shall also apply to other employers in relation to liability for loss or injury caused by their employees in the course of work or in relation to work.

The rules on the liability of enterprise for the damage caused by an employee while working or in relation to work, to a third person shall not be applied in cases where the loss or injury arising from a dangerous object of property or dangerous activity.

Liability of a Legal Person for Injury or Loss Caused by its Body

A legal person (corporate body) shall be liable for damage caused by its members or branches to a third person in performing or in connection to performing its functions.

Unless otherwise specified by the law for specific cases, a legal person shall be entitled to recover against a person being at fault for injury or loss inflicted wilfully or by gross negligence. That right shall expire six months after the payment of damages.

Read more:
Professional liability insurance in Serbia »
Compulsory insurance against liability »
Compensation »

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