Under the Civil Code rules on quasi-delict (torts), an employer may be held liable for the damage caused by their employee to a third person, a form of vicarious or imputed liability. The law provides that employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former (the employer) are not engaged in any business or industry. So if an employee, in the course of performing their assigned work, negligently causes injury or damage to another (for example, a company driver causes a vehicular accident while making deliveries), the injured party may sue the employer directly for the damages, together with or instead of the employee. The basis of this liability is the employer's own presumed negligence in the selection and supervision of the employee (culpa in eligiendo and culpa in vigilando). Two requisites are essential: there must be an employer-employee relationship, and the employee must have been acting within the scope of their assigned tasks at the time of the negligent act (an employee acting for purely personal purposes, outside their work, generally does not make the employer liable). The employer's liability is primary and direct (and solidary with the employee), not merely subsidiary, in a quasi-delict action. However, the employer has a defense: they may escape liability by proving that they observed all the diligence of a good father of a family to prevent the damage, that is, by showing due diligence in both the selection and the supervision of the employee. This is a defense the employer must affirmatively prove. Note that in a separate context, an employer may also be subsidiarily liable for the civil liability of an employee convicted of a crime committed in the discharge of their duties, if the employee is insolvent. So an employer is liable for the negligence of an employee acting within the scope of their assigned tasks, unless the employer proves due diligence in the employee's selection and supervision.
Vicarious Liability
Under quasi-delict, an employer is liable for damage their employee causes to others while acting within the scope of their assigned tasks — a form of vicarious liability.
The Basis and Requisites
The basis is the employer's presumed negligence in selecting and supervising the employee. Requisites: an employer-employee relationship, and the employee acting within their assigned tasks (not for purely personal purposes). The liability is primary, direct, and solidary with the employee.
The Employer's Defense
The employer may escape liability by proving they observed all the diligence of a good father of a family in the selection AND supervision of the employee — a defense the employer must affirmatively prove. Separately, an employer may be subsidiarily liable for an employee's crime in the discharge of duties if the employee is insolvent.
Practical Takeaways
- An employer is liable for an employee's negligence within their assigned tasks;
- Liability is direct and solidary in a quasi-delict;
- The employer escapes by proving due diligence in selection and supervision.
Frequently Asked Questions
Can an employer be held liable for an employee's negligence? Yes. Under the Civil Code rules on quasi-delict, employers are liable for the damages caused by their employees acting within the scope of their assigned tasks, a form of vicarious liability.
What are the requisites of employer vicarious liability? An employer-employee relationship, and that the employee was acting within the scope of their assigned tasks at the time of the negligent act. An employee acting for purely personal purposes generally does not make the employer liable.
How can an employer avoid liability? By proving that they observed all the diligence of a good father of a family to prevent the damage, that is, due diligence in both the selection and the supervision of the employee. The employer must affirmatively prove this.
Is the employer's liability primary or subsidiary? In a quasi-delict action, the employer's liability is primary and direct, and solidary with the employee. In a criminal case, the employer may be subsidiarily liable for the employee's civil liability if the employee is insolvent.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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