Ontario Barrister and Solicitor Practice Exam

The key implication of vicarious liability for employers is that it increases their liability exposure. Vicarious liability holds an employer responsible for the actions of their employees when those actions are carried out in the course of their employment. This means that if an employee commits a wrongful act—such as negligence or misconduct—while performing their job duties, the employer can also be held liable for any resulting damages or injuries.

This concept serves an important purpose in ensuring that victims can seek compensation from an entity that is more likely to be financially capable of providing that compensation, rather than solely relying on an individual employee who may not have sufficient resources. With this responsibility, employers must maintain a heightened awareness of their employees’ actions and the environment in which they work, as their potential financial and reputational risks are significantly increased under the doctrine of vicarious liability.

The other potential implications such as reducing insurance costs or absolving employers of responsibility do not hold true in the context of vicarious liability; in fact, it often leads to increased insurance costs due to higher risks associated with liability claims. Additionally, vicarious liability does not discourage legal action against employees; instead, it provides a pathway for claims against employers.