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Wednesday, October 14, 2026

When is an employer liable for its employees' actions? - People Management Magazine

Anne Morris explains to what degree organisations can be held legally accountable for the acts and omissions of their staff

Vicarious liability is a doctrine of law under which one person is liable for the wrongdoings of another. In the workplace, this means an employer may be found liable for an employee's unlawful actions, provided the wrongdoing was carried out in the course of employment.

As strict liability rules apply, the employer itself does not need to have done anything wrong or unlawful to be found liable. What matters is that there is sufficient connection between the employee's wrongdoing and their employment.

For example, if an employee makes discriminatory comments about a colleague, the employer may be held vicariously liable for unlawful discrimination. If an employee operates heavy machinery while under the influence of alcohol and causes an injury to another worker, the employer could be held responsible for the employee’s negligence.

Vicarious liability test

The test to determine if an employer can be held vicariously liable for the unlawful act of an employee is in two parts. The test was most recently refined and clarified in April 2020 when the Supreme Court decided the cases of Barclays Bank plc v Various Claimants [2020] and WM Morrison Supermarkets v Various Claimants [2020].

The first part of the test considers the nature of the relationship between the employer and the wrongdoer. If a genuine employment relationship is established, whereby the...



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