Set off by the employer in the event of an accident at work
When the employer concludes insurance for the risk of an accident at work of the workers and the insurer has paid compensation to the injured worker under this insurance, the insurance amount paid may be deducted from the compensation due by the employer for material and non-material damages.
When the employee claims compensation for material and non-material damages from the accident at work, the court is seized with two cumulatively objectively joined claims under Art. 200 of the Labor Code. The deduction of the received insurance compensation can be made both from the one due by the employer for the non-pecuniary damages and for the material damages from the accident. The employer who make an objection for deduction (Art. 200, para. 4 of the Labor Code) chooses from which of his obligations the deduction is to be made.
Where the deduction is made from compensation for non-pecuniary damage, the remainder, if any, is deductible from the compensation for pecuniary damage, and vice versa. If the amount paid as insurance compensation is equal to or exceeds the amounts of the compensations for material and non-material damages that the employer owes under Art. 200 of the Labor Code, then he is completely relieved of his obligations. When the insurer pays less than what is due by the employer, the latter owes the difference between the two amounts.
In case of a claim filed by the injured worker under Article 200 of the Labor Code, the employer should object with the response to the statement of claim, indicating which of his obligations the set-off should be carried out.
Where the set-off is made from compensation for material damage, expressed in the difference between the income that the worker would have received without the disability and the invalidity pension, the consent of the claimant is also required for the extinguishing effect of the compensation. The compensation replaces the income not received from remuneration, and Art. 105, prof. 1 of the Law on Obligations and Obligations, according to which a text without the consent of the creditor should not be set off receivables on which enforcement is not allowed. The rule of Art. 105 of the Law on Contracts and Contracts does not apply when the set-off is made from the due compensation for non-pecuniary damages.
Therefore, it is better for the employer to raise an objection to set off with the employee's claim for compensation for non-pecuniary damages.
This article has been prepared for the purposes of general information only and does not constitute legal advice concerning any particular subject or situation. For specific legal advice, you should contact an attorney-at-law. Stoeva, Tchompalov & Znepolski is not responsible for any legal action undertaken on the basis of the information contained herein.