Administrative Court of Justice Decisions on the Effects of Employer’s Fault in Accidents for Workers and Liability of Company’s CEO to the Company and Third Parties
J.Nouraei & M. Mostafavi Law Offices – 8 January 2026-Tehran –According to the Official Gazette of 8 Dey1404 (29 December 2025), the Administrative Court of Justice issued decision No. 140431390001695411 dated 12/07/1404(4 October 2025) in the Case number H-T/0300025, and announced that “According to Article 66 of the Social Security Act, if it is proven that an accident to a worker in a workshop is directly caused by failure to comply with technical protection regulations and the occurrence of an illness which is occured due to failure to comply with health regulations and necessary precautions by the employer or his representatives, the Social Security Organization shall pay the costs related to treatment, compensations, pensions, etc. and shall demand and collect from the employer in accordance with Article 50 of this Act. Also, based on Note (1) of this Article (66), the guilty party may be exonerated by paying the Organization the equivalent of ten years of the pension referred to in this Article.
The aforementioned official Gazette has also published the decision No. 140431390001771595 dated 19/07/1404 (11 October 2025) of the Administrative Court of Justice in case No. H-T/0300149, according to which “Considering that, according to Article 125 of the bill amending part of the Commercial Code approved in 1347(1969 ), the CEO of the company is considered the representative of the company within the limits of the powers delegated to him by the board of directors and has the right to sign on behalf of the company. Also, under Article 135 of the aforementioned bill, all actions and measures of the managers and CEO of the company are effective and valid against third parties, and their actions and measures adopted cannot be considered invalid on the grounds of non-compliance with procedures related to their selection. According to Article 142 of the aforementioned act, the managers and CEO of the company are individually or jointly liable to the company and third parties for violating the legal regulations, the company’s articles of association, or the resolutions of the general assembly, as the case may be. The court will determine the limits of each person’s liability for compensation for damages. Therefore, the CEO is considered the company’s representative within the framework of the aforementioned legal provisions.”
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