When is an employer liable for the wrongful or unlawful actions of their employees?
Vicarious liability is the responsibility that one person may have for another, based on the relationship of the parties. This is most common in the context of employer-employee relationships.
Two conditions must be in existence for a court to consider vicarious liability on the part of an employer.
First, there must be an employee-employer relationship between the wrongdoer and the employer.
Secondly, the wrongdoing must have been committed by the employee in the course of their employment.
Our courts have found employers vicariously liable for:
- Wrongful employee acts authorized by the employer, and
- Unauthorized acts done by the employee that are so connected with acts authorized by the employer that they may be regarded as modes of doing an authorized act.
This legal test, known as “the Salmond Test”, was applied by the Supreme Court of Canada in the 1999 case of Bazley v Curry, where the Court held that a non-profit organization may be held vicariously liable for sexual misconduct by one of its employees.
Our courts have acknowledged that there are a number of public policy rationales for holding employers vicariously liable for the actions of their employees. Such rationales include providing encouragement to employers to implement safety standards and protecting employees.
If you have any concerns regarding your potential liability as an employer, or any other questions relating to employment law, please do not hesitate to contact our experienced lawyers.
