Vicarious Liability

Posted on 27 Jan 2012 in Legal Updates

It is accepted law that an employer is vicarious liable for the acts and omissions of its employees where these occur in the course of employment, but can employers be liable for the acts of non employees? It appears so.  In the recent case of JGE v The English Province of our Lady & Another [2011], the High Court confirmed that a party can be vicariously liable for the wrongdoings of another, even if they are not employer and employee, so long as there is a close relationship between the two of them.

Employers should note that every case is fact specific and it is necessary to look carefully at the surrounding facts and circumstances and full nature of the relationship. Relevant matters will include the nature and purpose of the relationship (whether tools, equipment, uniform or premises were provided to assist the performance of the role), the extent to which one party has been authorised or empowered to act on behalf of the other and the extent to which the wrongdoer may reasonably be perceived as acting on behalf of the authoriser.

The extent to which there is control, supervision, advice and support from the employer will be of relevance but is not determinative.

Employers should be aware that in theory they could now be vicariously liable for the actions of third parties such as independent contractors, particularly if the relationship is close one. Employers who are concerned should take legal advice and consider arranging suitable insurance and indemnities to cover such liability.

For further enquiries please contact Kim Klahn 01789 206154 or kim.klahn@lodders.co.uk  or Sonia Mangat on 01789 206119 or sonia.mangat@lodders.co.uk.