Supreme Court declares employment contract between one-person LLC and its managing director void due to lack of subordination.
Legislator summary
AI generatedThe Supreme Court resolved a legal question regarding the validity of an employment contract between a one-person limited liability company and its sole shareholder who also served as the managing director. The plaintiff claimed a high salary for management duties, but the court found that such an arrangement inherently lacks the essential element of subordination required for an employment relationship. Consequently, the court ruled the contract void under the Civil Code, establishing that a person cannot be their own subordinate in this context.
Legislator headnote
AI generatedArt. 158 ust. 1, 2 k.h.; Art. 203 k.h.; Art. 58 § 1 k.c.; Art. 83 § 1 k.c.: An employment contract between a one-person limited liability company and its sole shareholder acting as the managing director is void due to the absence of subordination.