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As an employer, you are in principle liable for damage caused by your employee to third parties during work (Article 6:170 of the Dutch Civil Code). This is strict liability: you may be required to compensate the damage even without fault on your part.
Strict liability for subordinates
Article 6:170 of the Dutch Civil Code stipulates that you are liable for an error committed by a subordinate if there is a sufficient connection between the assigned task and the error. For example, if an employee damages a customer's car during work, the injured party can hold you liable as the employer.
When are you liable?
It is required that the employee acted unlawfully and that there is a functional connection with his work. You may be liable for both material damage and personal injury. The fact that the employee made a mistake does not automatically mean that you can recover it from him.
Recover damages from your employee?
Special protection applies to your employee: you usually cannot recover the damages from him, unless there is intent or conscious recklessness (Article 7:661 of the Dutch Civil Code). After all, the employee is allowed to make mistakes; that is part of the job.
Limit your risk
Ensure proper instructions, supervision, and appropriate liability insurance. Clearly define what you expect from employees in employment contracts and your policies. This prevents damage and puts you in a stronger position if things do go wrong.
Frequently Asked Questions
Am I also liable if the employee made a mistake through no fault of my own?
Yes, it is strict liability (Article 6:170 of the Dutch Civil Code): contributory negligence is not required, as long as there is a functional connection with the work.
Can I recover the damages from my employee?
Usually not, unless there is intent or conscious recklessness (Article 7:661 of the Dutch Civil Code). The employee is protected in principle.
Does this also apply to hired workers?
You may also be liable for non-subordinates under certain conditions (Article 6:171 of the Dutch Civil Code). The precise rules vary; have this assessed.
Ensure you are well covered for your liability?
Our legal experts advise on employer liability and record agreements in your employment contract. View our liability lawteam or schedule a free consultation.
