Law Blog


Can an Employer Recover Losses from Employees?

, / 1325 0

After issues of employee negligence, or employment agreement violations that result in any losses for the company, many employers are left wondering whether they can recover losses from an employee. It is commonly perceived that the Basic Conditions of Employment Act (BCEA) exists purely for the employee, this however is not the case. An employer can recover losses from employees as it concerns a contract of employment which must be handled by the Labour Court in South Africa.

Under What Conditions Can an Employer Recover Losses from an Employee?

Employers who are wondering about “suing an employee”, or in more refined terminology, recovering losses from an employee, may want to know conditions and principles apply. Employers can recover losses from an employee in a claim, provided that:

  • There is proof that there is damage or loss
  • This damage or loss was a result of breaching the employment contract
  • There is obvious gross employee negligence that has caused loss for the company

Should your situation support the above statements, you may be able to proceed with a claim to recover losses from an employee.

How Can an Employer Recover Losses from an Employee?

In order to recover losses from an employee, you will need to go through the Labour Court. To ensure an effective and seamless process, it is best to do this with the help of professional attorneys. However, a claim is not always the simplest way to recover losses, if possible, you should try less complicated course of action such as making salary deductions from your employee’s remuneration. This can only be done if the damage occurs during employment and it is important to ensure that you strictly comply with a variety of requirements during this procedure, such as having a written agreement between employer and employee i.e a contract. Should the employee not admit liability, the employer may proceed with court action.

Need Expert Advice?

If you’re looking for expert advice on how to recover losses from employees correctly, and what route would be best for you to take, get in touch with professional attorneys. The best way to claim any losses always begins with esteemed attorneys that can assist you throughout the procedure.