The high court on vicarious liability

Vicarious liability (respondeat superior) is a venerable common law doctrine which holds an employer liable for the torts of employees, regardless of the fault of the employer. An employer's liability for the torts of its employees can represent a significant financial obligation and can affect both hiring and operational decisions of businesses. Vicarious liability is a prominent theme in the background of much litigation and is often the reason for litigating the issue of whether or not a worker is an employee. Vicarious liability may also arise through other relationships, such as partnership and agency. Two recent decisions by the High Court of Australia have drawn attention to the issue of vicarious liability. These decisions illuminate the High Court's view of vicarious liability's two main streams: negligence (Hollis v Vabu Pty Ltd) n2 and intentional tort (NSW v Lepore). [*2] n3