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Director Of Bankrupt Company Liable For Damage Suffered By The Employee

The Supreme Court of the Republic of Lithuania developed interpretation of provisions of the Tort law providing more guarantees to the employee injured at work in case when company (the employer) went bankrupt and extended regulations of company director liability. The Supreme Court found that in case of indirect liability (company is liable for the damages caused by its employees) and liquidation of such Company due to bankruptcy the damage incurred to injured person shall not be left because of Company bankruptcy. An employee who was injured at work shall have right to direct his request of damage compensation to the person who caused the damage. In this particular case it is the director of the Company. This interpretation is based on Principles of European Tort Law providing for liability for auxiliaries.

 Article referred: http://legalknowledgeportal.com/2015/11/13/new-case-law-trend-the-director-of-the-company-shall-be-liable-for-the-damage-suffered-by-the-employee-in-the-event-when-the-company-went-bankrupt/

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