What is Vicarious Liability?
Written by Marie Oxland | Personal Injury Team | 20 June 2024
Vicarious liability is a legal principle that holds an individual or entity responsible for the actions of another person, typically in a relationship where one party has control or authority over the other.
It is most commonly applied in employment situations, where an employer may be held liable for the actions of their employees if those actions occur in the course of their employment.
The rationale behind this principle is that the employer or superior party has the right, ability, or duty to control the activities of the employee, and therefore should bear some responsibility for the employee’s actions.
An employer may be vicariously liable for the actions of their employees if those actions are closely connected to their employment and occur during the course of their work. This legal principle ensures that victims of wrongful acts have a means of redress, especially when the employee might not have the financial means to compensate for the harm caused. Vicarious liability can arise in various situations, such as when an employee's negligence leads to injury or damage, or when an employee commits a tort (wrongful act) within the scope of their employment. For instance, if an employee discriminates against a colleague or customer, the employer could be held responsible if it is determined that the discrimination occurred 'in the course of employment', as defined by the Equality Act 2010. However, an employer may not be held vicariously liable if they can demonstrate that they took all reasonable steps to prevent the wrongful act, such as providing adequate training and implementing effective policies.
"Acting in the course of employment" means the actions taken by an employee that are within the scope of their job duties and responsibilities. This concept is crucial in determining an employer's liability for the actions of their employees. This includes tasks assigned by the employer, actions taken while the employee is working on behalf of the employer's business and can extend to situations where the employee is traveling for work-related purposes. The principle behind this is that employers should be responsible for the business risks associated with their operations, including the actions of their employees. Establishing vicarious liability requires a relationship of control between the employer and employee, a tortious act, and that the act must be in the course of employment.
Vicarious liability is distinct from other forms of liability, such as direct liability, where a person is held responsible for their own actions, and strict liability, where a person is held responsible for the outcome of their actions regardless of fault or intent. In the context of vicarious liability, the focus is on the relationship and the nature of the act, rather than the specific conduct or state of mind of the superior party. It is important to note that vicarious liability is not absolute; there are limits to when it can be applied. The actions of the employee must be closely related to their duties and typically must occur within the scope of their employment. If an employee acts outside the scope of their employment, the employer may not be held vicariously liable.
Employers can take steps to protect themselves from vicarious liability. Implementing comprehensive risk assessments is crucial, as it allows employers to identify and mitigate potential risks within the workplace. Regular training for employees is also essential, ensuring that they are aware of company policies and the behavior expected of them. Creating clear company policies, particularly those related to anti-bullying, harassment, and equality, can establish guidelines for acceptable conduct and procedures for reporting and addressing issues.
Employers should ensure that their policies are not only in place but are also consistently enforced and reviewed for effectiveness. This includes taking corrective action when policies are breached and keeping records of such actions. Employers will need to show that they have taken 'all reasonable steps' to prevent wrongdoings, if they wish to show that they are not vicariously liable for the actions of an employee.
If you have had a workplace accident and are looking for advice on what to do next, our experienced Personal Injury team can advise whether you have a potential claim. You can get in touch with them by calling 01752 827085 or emailing enquiries@nash.co.uk.
