The Principle of Respondeat Superior in Business Law
Respondeat superior, also known as the “Doctrine of Vicarious Liability”, is a legal principal often used in business law. It states that employers are held legally responsible for the acts and omissions of their employees. The Latin phrase is translated to mean “let the master answer” or “the master is liable”.
Respondeat superior holds employers liable for their employees’ behavior, so long as that behavior is within the scope of the employees’ job duties. Employers can be held liable for the mistakes of their employees while performing job duties, and this includes any illegal activities they may engage in. This concept applies to any company that employs staff, no matter its size.
Implications of Respondeat Superior for Employers
Respondeat superior can have serious implications for employers if they’re ever held accountable for actions taken by their employees. Businesses will have to compensate for any damage caused by their employee’s negligence or misconduct, and this often carries a large financial burden.
Additionally, employers must take extra care in assigning tasks and ensuring that employees know what’s expected of them. If any task requires specialized training or knowledge, employers must provide this training or acquire the necessary knowledge before assigning it. Poor hiring practices can also put an employer at risk of failing to adequately supervise their employees, for which they can be held accountable.
Examples of Respondeat Superior in Action
Respondeat superior will usually be applied if an employee’s actions cause injury or economic loss to another party. Here are some examples of where it might come into effect:
- An employee injures someone while performing their duties: In this case, the employer would be responsible for the employee’s actions and would be liable for any damages or medical expenses caused by the injury.
- A customer is verbally abused by a salesperson: As a result of this incident, the employer would be liable for any emotional distress caused by the employee’s behavior.
- An employee steals from the company: In this case, the employer could be held responsible for any financial losses that occur as a result of the theft.
