Financial Liability of the Manager as Parties to the Employment Contract
Authors: Sheverdina Victoria 
Published: March 2023

Problem setting. The relevance of the question regarding the legal position of the manager has increased significantly at the stage of formation and development of the market organization of the economy in modern conditions. The dishonest work of managers, their abuse of their official position lead to the need for legal influence on the manager as a person who has the right to make decisions on economic activities, as well as in the field of organization and labor management. Within the scope of the manager’s responsibility, material responsibility is of particular importance, if as a result of an offense damage is caused to the employer’s property, there may be an obligation to compensate it in full or in part. A manager, as a person working under an employment contract, aware of the consequences of a labor-related property offense, must, by his voluntary and conscious actions, perform his work function in such a way as not to cause harm to the employer and his property, as well as to other employees. Material responsibility is the guarantee of such willful actions. In its essence, the financial responsibility of the manager is a problem of a larger scale than simple prevention of violations or compensation for the damage caused. The dual nature of the range of labor rights and responsibilities of a manager indicates that such an employee realizes his abilities to work by performing work related to the management and management of an enterprise, institution, organization, realizing the competence of a business entity and the legal personality of an employer. Therefore, the study of the essence of the manager’s financial responsibility is an urgent problem that needs to be solved at the scientific level. Analysis of recent researches and publications. A significant number of dissertations, monographs and periodicals are devoted to the issues of liability in labor law and the regulation of labor relations. Among them, we can highlight the scientific achievements of V. S. Venediktov, N. M. Lukashev, O. M. Lukyanchikov, I. V. Lazor, O. I. Protsevsky, S. M. Prilypka, A. M. Slyusar, N. M. Khutoryan, G. I. Chanysheva, O. V. Cherkasova, V. I. Shcherbiny, O. M. Yaroshenko, and others. Target of the research is to determine the essence of the manager’s material responsibility as a party to the employment contract. Article’s main body. The article examines the peculiarities of the legal position of the manager (enterprise, institution, organization), since he is both a body of a legal entity and an employee who is himself in an employment relationship with the owner of such a legal entity. The issue of applying material liability to him was also analyzed, taking into account the specific functions of managing a legal entity, since the legislation of Ukraine provides for a fairly high level of liability for the violation of their labor duties by such persons. In general, material responsibility is one of the types of labor law responsibility that can be applied to an employee within the framework of employment relations. This responsibility applies to managers on the grounds and conditions provided for employees, however, this category of employees (managers) due to the nature of their work cannot be fully equated in matters of responsibility with ordinary employees. A manager, as a person working under an employment contract, aware of the consequences of a labor-related property offense, must, by his voluntary and conscious actions, perform his work function in such a way as not to cause harm to the employer and his property, as well as to other employees. Material responsibility is the guarantee of such willful actions. It is noted that the current labor legislation regulates in detail only the financial responsibility of employees, while some cases of the financial responsibility of the manager have not been established. The legislative provisions establish exclusively that employees bear material responsibility for damage caused to the enterprise, institution, or organization as a result of violation of the labor duties assigned to them. Conclusions and prospects for the development. Summarizing the above, we came to the conclusion that the financial responsibility of the manager largely depends on his work function. The dual nature of the range of labor rights and responsibilities of a manager indicates that such an employee realizes his abilities to work by performing work related to the management and management of an enterprise, institution, organization, realizing the competence of a business entity and the legal personality of an employer. Today, it should be recognized that the legislation regulating the procedure and conditions for concluding employment contracts with materially responsible persons needs further improvement in two directions: 1) the mandatory establishment of a condition on material responsibility in the employment contract; 2) determination of the minimum list of conditions that can be included in the text of employment contracts with materially responsible persons. These directions will be promising in view of the development of the new Labor Code of Ukraine when determining the mandatory terms of the employment contract.