Vicarious liability holds employers liable for wrongful acts of employees committed in the course of employment.
Legislation: Common Law; Anti-Discrimination Legislation | Category: Legal Concepts
What is Vicarious Liability?
Vicarious liability is a legal principle that holds employers liable for the wrongful acts of their employees committed in the course of employment. In the workplace context, it is most relevant to discrimination, sexual harassment, and bullying claims, where employers can be held responsible for conduct by employees even without direct involvement or knowledge.
Employers can defend vicarious liability by demonstrating they took “all reasonable steps” to prevent the conduct. This typically requires having appropriate policies, providing training, establishing complaint mechanisms, and taking prompt action when issues arise.
Key Compliance Points for Employers
- Liability can attach even for conduct the employer didn’t authorise or know about
- Conduct must be “in connection with” employment — social events and work-related travel can be covered
- The “all reasonable steps” defence requires proactive prevention, not just reactive response
- Policies alone are insufficient — they must be implemented, communicated, and enforced
- Documentation of prevention efforts is essential to establishing the defence
Frequently Asked Questions
What is Vicarious Liability?
Vicarious liability holds employers liable for wrongful acts of employees committed in the course of employment.
Why is Vicarious Liability important for employers?
Understanding vicarious liability helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
