Employee Liability: How a Court Ruling Could Drive Senior Executives to Ruin
A court ruling potentially toughens the liability risks for senior employees: if they cause damage, they risk being personally liable with their private assets.
A German court, the Landesarbeitsgericht (LAG) Köln, has made a ruling that could have significant implications for employees. The case involved a finance manager who was deceived by cyber scammers into making 60 wire transfers totaling over 50 million euros. The court found the manager guilty of gross negligence and ordered him to pay the full amount of damages to the company, despite the company having a Directors and Officers (D&O) insurance policy.
The ruling has been criticized by experts, who argue that it undermines the existing principle that employees are only liable for a portion of damages, typically up to three months' salary.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
