This paper describes the regulation of employer liability for damage caused to employees but also the worker's responsibility for damage caused to the employer, the employer's responsibility for damage to third parties caused by the worker, and special cases of compensation for damage according to the Labor Act. The paper examines fundamental concepts of liability, including the employer's objective and subjective liability, while analyzing the conditions and assumptions under which an employer is held liable for damage suffered by an employee. Special emphasis is placed on the distinction between liability based on fault criteria and liability based on causality criteria. Furthermore, the paper provides a detailed explanation of the concept and types of exculpatory reasons that absolve the employer from liability, such as force majeure, intent, or gross negligence of the employee or third parties. The paper discusses specific examples of compensation for damage to employees by the employer, such as extraordinary termination, protection of employees' personal data, annual leave, judicial termination of contracts, work-related injuries and illnesses, and many others.