In certain circumstances, you can be found liable for the misconduct of an employee if the misconduct occurred in the course of employment.
This legal principle is known as vicarious liability. Ireland’s employment law equality legislation, for example, places a strict onus on employers to prevent discrimination, harassment and bullying in the workplace.
These cases tend to be the most high-profile examples of vicarious liability of employers.
Likewise, an employer can suffer vicarious liability under health & safety legislation.
If an employee is working within the scope of his/her duties and their work-related negligence causes harm to a third party, the injured party is likely to make their compensation claim against you as the employer.
Vicarious liability in criminal law operates along the same principles, one person can be held liable for the criminal actions of someone else though the principle is more commonly found in civil law.
In general, if your employee commits a criminal act that's outside the scope of his/her employment you'll not be found vicariously liable.
Case law
To see exactly how the courts have interpreted this legal principle, let’s take a look at some vicarious liability case law examples.
In In Lynch v Binnacle Limited t/a Cavan Co-Op Mart, the Irish Supreme Court examined the law on vicarious liability.
Mr Lynch was kicked by a bullock while working in the mart. The claim alleged that the employer had failed in its duty to provide safe place of work.
The employer argued that Mr Lynch was an experienced drover and his decision to go into the pen unaided was his own fault.
The Supreme Court found that as two employees who should have been assisting Mr Lynch were absent, the employer was vicariously liable for the unsafe system of work which resulted.
A recent UK case looked at the vicarious liability test that can be used to determine whether the employer is liable for the acts or omission of the employee.
In AM Mohamud v WM Morrison Supermarkets Plc, Mr Mohamud was the victim of a violent assault by a petrol pump attendant working for the supermarket.
In his claim, Mohamud sought to make the supermarket vicariously liable for the actions of its employee.
The UK Supreme Court found Morrisons to be vicariously liable for the actions of its employee.
In reaching their decision, the court applied the “close connection” test and found that the incident was within the “field of activities” assigned to the petrol pump attendant.
Vicarious liability meaning being found liable for the actions of a third party is a serious risk for employers.
Vicarious liability examples of how you could be found liable for the acts or omissions of your employees include:
- Bullying.
- Harassment.
- Health & safety.
- In certain cases the criminal acts of staff.
While each case will be determined on its own facts, it’s vital to ensure your business deals with this risk by putting strong workplace behaviour and health and safety policies in place.
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