facebookI work in a company. If I do something wrong, can the company be held liable also? - Seedly

Amigo Scoffield

08 Jun 2021

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Career

I work in a company. If I do something wrong, can the company be held liable also?

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The legal relationship between an employer and an employee is called agency. The employer is called the principal when engaging someone to act for him. The person who does the work for the employer is called the agent. The theory behind respondeat superior is that the principal controls the agent's behavior and must then assume some responsibility for the agent's actions.

Yes, your company can be held liable for your actions. In law, this concept is called vicarious liability.

Whether a company is legally liable for their employees' actions depends on 2 main factors:

a. Whether a "special relationship" existed between the employer and employee

b. The degree of authority the company granted the employee, and whether the company purposefully permitted or encouraged the behaviour of the employee

Read this guide on corporate vicarious liability in Singapore. If you're unsure whether your actions are legally permissible, it's best to speak to your company's HR or Legal department for clarity.

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