Part Ⅱ Obligations
Chapter II Particular Kinds Of Obligations
Section 24-1 - Employment Guaranty
An employment guaranty is a contract whereby the parties agree that one of them shall be bound to make compensation when the employee of the other party shall be liable to compensate the other party for the performance of his duties in the future.
The contract of the preceding paragraph shall be made in writing.
The guarantor in employment guaranty may be held liable only in so far as the employer is unable to obtain compensation by other means.
When the guarantor is held liable in accordance with the provision of the preceding paragraph, unless otherwise provided by the act or the contract, the compensation shall be limited to the total sum of the remuneration which the employee may receive in the year when the event causing the injury happened.
The duration of employment guaranty agreed upon shall not exceed three years. If it exceeds three years, it shall reduce to three years.
The parties may renew the duration prescribed in the preceding paragraph.
If there is no duration fixed in a contract of employment guaranty, the duration of the contract shall be three years reckoning from the date of the constitution of the contract.
If there is no duration fixed in a contract of employment guaranty, the guarantor may terminate the contract at any time.
For the termination of a contract in the preceding paragraph, the employer shall be notified three months beforehand. However if the parties agree upon a shorter period of notification, this period shall be followed.
The employer shall notify the guarantor if there is any situation as follows:
(1) The employer may terminate the contract of hire of services according to the law, and the reason of the termination might cause the guarantor to be held liable;
(2) The employee shall be liable to compensate the employer for the performance of his duties, and the employer has made the claim against the employee;
(3) The employer changes the contents, or time, place of the employee's job, and this therefore intensifies the liability of the guarantor or makes him hard to watch out for the performance of the duties.
The guarantor who receives the notification of the preceding paragraph may terminate the contract. The same rule shall be applied when the guarantor is aware of anything as prescribed in the preceding paragraph.
The court may reduce or release the compensation for the guarantor if there is any situation as follows:
(1) The situation as prescribed in the first paragraph of the preceding article happened, but the employer does not notify the guarantor immediately;
(2) The employer is negligent of the selection and supervision of the employee or his duty of supervision.
The relationship of employment guaranty extinguishes if there is any situation as follows:
(1) The duration of the guaranty expires;
(2) The guarantor died, goes into bankruptcy, or loses the capacity to make juridical acts;
(3) The employee dies, goes into bankruptcy, or loses the capacity to make juridical acts;
(4) The relationship of hire of services extinguishes.
The claim of the employer against the guarantor shall be extinguished by prescription if not exercised within two years.
Unless otherwise provided by this section, the provision concerning the guaranty shall apply mutatis mutandis to the employment guaranty.