Question

Why does the designation matter from a tort liability perspective? How is the principal/employer liable depending on the classification?

Answer 1

A tort is any civil wrong which has been comnmitted against any individual or party which has resulted from breach of contract, breach of duty etc. While setting the blame, the courts usually look for the party who is principally liable to have committed the tort. For example, if a delivery executive of an e-commerce firm has failed to provide the delivery of goods in a proper condition, then the delivery executive only cannot be held liable but the management who is responsble for overseeing the operations is held liable. And hence the designation is of paramount importance while finalizing tort liability.
The principal employer is also held liable in case of any tort caused by contractor employees. So in this case while the employees and the contractor are held responsble but since they are ultimately working for a bigger firm, who is their principal employer, the principal employer is also held liable.