Where would be better to handle an exception?

Imagine I have the following DAO method:

public Employee getEmployeeById(Integer id){
    NamedParameterJdbcTemplate jdbcTemplate = new NamedParameterJdbcTemplate(getJdbcTemplate());
    String sql = "SELECT * FROM users WHERE id = :userId";
    Map<String, Object> parameterMap = new HashMap<String, Object>();
    parameterMap.put("userId", id);
    return jdbcTemplate.queryForObject(sql, parameterMap, new EmployeeRowMapper());// Throws 
                                                               //EmptyResultDataAccessException
}

The DAO method is used by the controller method:

public class EmployeeListController{

    @Resource(name = "employeeDAO")
    private EmployeeDAO employeeDAO;

    @RequestMapping(value="/{empId}", method=RequestMethod.GET)
    public String getEmployeeById(@PathVariable String empId, Model model){
        model.addAttribute("employee", employeeDAO.getEmployeeById(Integer.valueOf(empId)));
        return "employeesList";
    }
}

Where would be better to handle the Exception? In the controller's method or the DAO's method? I think, that in the controller it would be, because otherwise we should return the Object with empty properties, which is not good. Is it correct?