Vicarious Liability

Understanding Vicarious Liability

  • Vicarious liability is a legal doctrine that assigns responsibility for an injury to a person who did not cause the damage, but has a particular legal relationship to the person who did act negligently.
  • It is often applied in cases where an employee commits a tort (a civil wrong) during the execution of his or her job, in such cases, the employer can be held responsible.
  • This doctrine is based on principles of fairness and justice, and it’s primarily aimed at ensuring compensation to the injured party.

Conditions for Vicarious Liability

  • For vicarious liability to apply, a relationship of a certain kind must exist, usually between employer and employee.
  • The wrongful act must have been committed within the course of that relationship. This typically means it must have occurred during the time of employment and whilst the employee was doing their job.
  • It does not usually matter whether the employer authorised the wrongful act, what is important is if the act was closely connected to the work the employee was asked to do.

Exceptions to Vicarious Liability

  • Independent contractors: Generally, an employer is not held liable for the actions of an independent contractor, as they do not have control over how the work is carried out.
  • Unauthorised acts: Employers might not be held liable if the employee’s actions were not authorised or were outside the course of employment. However, this depends on whether the actions were a personal venture or could be seen as a mismanaged attempt at fulfilling their duties.

Effects of Vicarious Liability on Business

  • Businesses can face large financial damages if found vicariously liable. This can have significant impact on the profitability and reputation of a business.
  • It highlights the importance for businesses to ensure they have relevant insurance policies in place.
  • It encourages businesses to invest time in selecting, training and supervising their employees to avoid such incidents.

Ultimately the principle of vicarious liability ensures that people are held responsible for the actions of others under certain circumstances, providing an effective deterrent for negligent behaviour. It’s focused on protecting individuals and promoting accountability in relationships where power is unbalanced, such as between an employer and employee.