It has long been a principle "that it is just to make
the employer, whose business the employee is carrying out,
responsible for injury caused to another by the employee in the
course of so acting, rather than to require that the other,
innocent, party bear their loss or have only the remedy of suing
the individual employee". This is known as vicarious
liability.
This principle is reflected in legislation, like the
Employees Liability Act 1991 (NSW), confirming employees
are not liable if they commit a tort in their employment.
But there are limits to that liability. Under the Employees
Liability Act, an employee is not protected, and nor is the
employer accountable, if the employee's conduct is serious and
wilful misconduct or if it did not occur in the course of, and did
not arise out of their employment.
