Head of practice
Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Liability agreement
The concept of a material liability agreement
A material liability agreement (hereinafter referred to as a MLA) is an agreement between an employee and an employer, according to which the first party assumes responsibility for the preservation of the property and other material assets of the second party, which he had the right to use for the proper performance of his labor duties.
The main aspects of this contract are regulated in the Labor Code and the Civil Code of Ukraine. In particular, we will highlight the essential conditions and features:
- the parties are the employee and the employer (legal entity). It is important that there is an employment relationship between the persons on the basis of an employment contract. If a civil law contract is concluded with the employee, he cannot be considered the subject of the agreement and will not be subject to liability;
- the subject is the equipment, tools and other property of the enterprise, which is transferred to the employee for the proper performance of work. A necessary condition is also the notification by the employer of the employee of the obligations regarding the use of the relevant material assets;
- the obligations of the counterparties - on the part of the employer (to create conditions for the proper preservation of the property, to familiarize the latter with the rules for the use and storage of the relevant equipment or tool), on the part of the employee (to take measures to preserve the employer's property transferred for use, to timely notify about the threat of its damage);
- Employee liability - in the form of partial (in the amount of the employee's monthly salary according to job descriptions, employment contract) or full material liability (in the amount of damages) in accordance with the law.
When concluding a material liability agreement, it is important for the employer to proceed from the principle of reasonableness, good faith and free will on the part of the employee. You can learn more about the employer's actions in concluding this type of agreement by contacting the relevant lawyer of the Company "Prikhodko and Partners".
Who can be a materially liable person?
A materially liable person is an employee who performs work at the enterprise and who has been entrusted with material assets, in the event of damage to which he is obliged to compensate for material liability in part or in full.
The grounds for considering a person financially liable are as follows:
- concluding a collective labor agreement with the employer, drawn up in accordance with current legislation and in the absence of grounds to consider it invalid (for example, when proving the signing of the agreement under duress, i.e. without free will);
- receipt by an employee for reporting under a one-time legal document (for example, a power of attorney) of material values from an enterprise or institution;
- proving the person's guilt in the destruction or damage of the relevant property.
In addition, in accordance with Article 135-1 of the Labor Code of Ukraine, a collective labor agreement may be concluded with an employee who: firstly, has reached the age of majority; secondly, performs work directly related to the storage and use of property in the production process (see the current list of positions from the Cabinet of Ministers of Ukraine). Finally, a person who performs their own work duties at home (remotely) and uses equipment or tools provided to them by their employer may also be subject to full material liability.
Legal support for the development of a draft contract on material liability
Proper development of a draft contract on material liability is the key to high-quality and lawful registration of relations between the employer and the employee. A professional lawyer will be able to ensure that the relevant contract complies with the norms of current labor legislation, other regulatory legal acts regarding it; balance the interests of the counterparties, taking into account all possible legal risks and providing mechanisms for their minimization.
By contacting the specialists of the Law Firm “Prikhodko & Partners”, interested clients will be able to receive:
- high-quality legal advice (regarding the legislative requirements for the contract, the rights, and obligations of the parties, etc.);
- full-fledged development of a draft of a future agreement (taking into account all the necessary conditions regarding the subject, term of the contract, etc.);
- professional legal analysis and correction of the existing draft contract on material liability (along with the introduction of necessary changes and additions).
Conclusions. The material liability agreement is an important document that regulates the relationship between the employer and the employee regarding the preservation of the company's property. Therefore, its development and conclusion require professional legal support. The services of the lawyer "Prikhodko and Partners" include obtaining high-quality legal advice, developing a full-fledged draft agreement, professional legal analysis and corrections.
Choose lawyers who have experience in drafting contracts and receive high-quality support in drafting a contract on material liability. To receive a consultation from a specialist of our company, please fill out the form below.
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