Q&A: Liability for damage for WA employees | Circle Green Community Legal

This information resource is for private sector employees in Western Australia. It is general information only and not intended to be a substitute for legal advice. By using the information on this page, you agree to our full disclaimer.

There are two systems of employment law in Western Australia: a state system and a national system. While this information resource is suitable for both state system employees and national system employees, it will help you to know which system of employment law you are covered by. If you are unsure, please see our publication: Q&A: State or national for WA employees.

Quick Summary
You need to take reasonable care when performing your work.

If you cause damage to property during your work, your employer usually pays for it unless you have been:

negligent (you haven’t shown reasonable care), or
engaged in serious or wilful misconduct (you have deliberately breached the terms of your employment).

If this is the case, then you may have to pay for the damage you have caused.If you believe you are liable to pay for damage caused, you may look to organise a payment plan with your employer.

If your employer accuses you of damage that you did not cause, you can write to your employer explaining your side of the situation. You may be able to make a claim if your employer takes negative action against you for this damage.

Do I have to pay for the damage I caused to my employer’s property?

You have to take reasonable care when carrying out your work. This is an unwritten (or implied) part of your employment contract. It may also be a written term in your employment contract.

If you have caused damage to property at work, generally your employer will be responsible for paying for the loss. However, you may be responsible for paying where:

you have been negligent when you caused the damage. This means that you have failed to take reasonable care; or
your conduct was serious or willful misconduct.

My employer is accusing me of damage that I did not cause, what do I do?

If you didn’t cause the damage or you think you took reasonable care you can email your employer asking them why they think that you are responsible for the damage.

You may respond explaining why you did not cause the damage or that you took reasonable care when the damage happened.
Keep your communications in writing and have evidence to support yourself if the employer does take action against you.

If your employer takes negative action against you for seeking more information or outlining why you are not responsible for paying, you may be able to make a claim.

For more information on protected complaints and actions, you can see our publication: Q&A: Protected complaints and actions for WA workers.

For more information on dismissal-based claims, you can see our publication: Q&A: Dismissal for WA Employees.

You should be aware that dismissal-based claims can have time limitations as short as 21 days from the date of dismissal

How do I respond to my employer?

What if I refuse to pay?

What if I can’t afford to pay the amount right now?

How do I organise a payment plan with my employer?

What happens if my employer dismisses me for damaging their property?

If you have been unfairly or unlawfully dismissed from employment, you may be able to make a legal claim. However, the claims available to you will depend upon your situation and the process that the employer took when dismissing you.

For more information on dismissal-based claims you can see our publication: Q&A: Dismissal for WA Employees.

Be aware that dismissal-based claims can have time limitations as short as 21 days from the date of dismissal.

I have questions about my employer's insurance

What if my employer has insurance?

What if my employer has insurance but does not want to use it?

I have been asked to pay the excess of my employer’s insurance, what do I do?

My employer’s insurance company is seeking to recover a loss from me, what do I do?

Can my employer withhold my pay if I damage their property?

Your employer has a very limited ability to withhold your pay or take money out of your pay without your agreement.

Your employer can only take money out of your wages if:

a) you agree in writing and it’s for your benefit; or

b) it is authorised under an award, agreement or order.

You should check your award or agreement to see whether your employer is able to take money out of your pay. If you are unsure if you are covered by an award or agreement you can contact Wageline (for state system employees) or the Fair Work Ombudsman (for national system employees).

If you agree that you did not take reasonable care and are responsible to pay for the damage, you can look to negotiate a repayment plan.

If you do agree to a payment plan, make sure it is reasonable and that you can afford the payments.

Further information and assistance

Circle Green Community Legal

WA employees can request free and confidential legal assistance with employment and workplace discrimination issues from Circle Green Community Legal.

Complete an online request: circlegreen.org.au/get-help-workplace/
Telephone enquiries: 08 6148 3636 (Please note that we do not provide on demand legal advice)

For further information on our Workplace law services, please visit: circlegreen.org.au/workplace

Other organisations

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Law Society of Western Australia