Vicarious liability is a legal principle where a person is held responsible for the actions or inactions of another. This means that an employer may be held responsible for the wrongful acts of an employee, as long as the act occurs within the course and scope of employment.
It is important for every individual to know and understand vicarious liability as it guarantees business accountability and protects third parties who may be harmed by businesses.
Legal Framework
According to the legal principle, employers are liable for acts done by their employees. In order for the principle to be effectively applied, there must be;
- Employment Relationship: In order for an employer to be responsible for the act of another, that person must be an employee.
- Course of Employment: The wrongful act must have occurred during the performance of the employee’s duties. Therefore, if an employee strays from their duties, the employer may not be liable.
For example, if a company driver hits an individual crossing the road while on his way to deliver company goods, the company will be liable. This is because the delivery of goods is a duty the driver is mandated by the company to perform. However, if the driver hits an individual crossing the road during the weekend while on his way to church, the company may not be liable. This is because, using the company vehicle to go to church on a day the company doesn’t work is not a duty of a company driver.
Defenses
Generally, all defenses available to the employee will be available to the company. However, in order for the company to defend itself against vicarious liability claims, it must prove that;
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- The individual was not an employee
- The act occurred outside the scope or duties of employment
Knowledge and understanding of vicarious liability is essential for all. It helps businesses prepare for risks their employees may bring upon them and also train them to avoid such risks. It also allows injured parties to seek compensation even if the individual who did the harmful act cannot afford the costs for injury they have sustained.
Philipa N. A. Sima Nuamah on behalf of OSD and Partners. [email protected]
