Question

What is “vicarious liability” and why is it a concern for business?. What can a business do to lower the risk of vicarious liability

Subject=Legal Aspects of Transportation Management

Answer 1

Vicarious Liability relates to situations where one party is held responsible or liable for the actions committed by a third party. It is a big concern for businesses as they may be held responsible or liable without any direct fault from their side.

The most common example of Vicarious Liability is when an organization is held responsible for an unlawful act committed by one of its employees. So, if there is a case of one employee facing harassment at the workplace from another employee, the employer shall also be held responsible for failing to stop workplace harassment. Similarly, if there is a workplace accident which has caused major injuries or fatalities, and which happened due to one employee's mistake, the employer would also be held responsible.

To lower the risk of Vicarious liability, businesses can do the following:

• Have very clear and strict policies regarding workplace harassment, discrimination, job safety, etc- With strict policies in place, employees would be extra cautious not to commit any unlawful act at the workplace.
• Provide training to all employees on topics like workplace harassment, discrimination, job safety.- Training would provide the required knowledge to all employees so that do not commit any unlawful act, even by mistake.
• Deploy only highly skilled workers on jobs which are critical in terms of safety.- Putting skilled workers in critical jobs would reduce the risks of mistakes and hazards.
• Conduct regular audits to ensure 100% compliance of company's policies.- This will help to maintain discipline in the organization, and any lapses could be acted upon at the earliest.