Contract penalties are additional guarantees for the performance of the contract. This is regulated in the Civil Code in Art. 483 to 485, according to which the parties can stipulate in the contract that compensation for damages resulting from non-performance or non-performance of non-monetary obligations will be made by payment of a certain amount of money.
Providing appropriate contractual sanctions in contracts has a number of advantages, especially compared with the general principles governing liability for losses. First of all, in the event that the employee does not carry out or improperly performs his obligations, which are covered by the contractual penalty provisions, the employer is entitled to a contractual penalty in the amount specified in the contract. These penalties apply regardless of the actual amount of losses suffered by the employer. Even the absence of damage does not relieve you of the obligation to pay contractual fines. Including provisions regarding contractual penalties also significantly facilitates efforts to pay compensation in court. Therefore, the use of provisions governing contractual penalties is very beneficial for employers.