An employee is not held financially liable for damages caused to an employer if their actions were carried out within the scope of their assigned authority. According to labor legislation, an employee is only obligated to compensate for direct actual damage related to the restoration of the employer’s property. Lost profits or unrealized income cannot be claimed from the employee.

In one particular case, a state institution sought to recover from a former temporary head an amount it had paid to an employee reinstated by court order for forced absence. The acting head had signed a dismissal order, which subsequently led to a court decision to reinstate the dismissed employee and compensate them.

However, courts of three instances rejected the institution’s claim. The courts ruled that since the former head acted within their authority when signing the documents, their actions could not be directly linked to the incurred damage. Furthermore, it was established that the institution itself had committed procedural violations during the internal investigation.