Vicarious Liability: When an Employer Pays for an Employee's Mistake

Vicarious liability makes one person or business legally responsible for wrongs committed by another, most often an employer for its employees.

When it applies

• The person who caused the harm was an employee (not usually an independent contractor).
• The harm happened in the course of employment: while doing their job, or something closely connected to it.

The Supreme Court of Canada set out the modern approach in Bazley v. Curry (1999): the question is whether the employer's business created or significantly increased the risk of the harm.

Common examples

• A company driver causes a collision while making deliveries.
• A store employee damages a customer's property.
• A worker at a renovation company causes water damage.

When it may not apply

• The employee was on a "frolic of their own," doing something unrelated to the job.
• The person was a genuine independent contractor, although the business may still be liable for its own negligence, such as hiring someone unqualified.

Why it matters

The business usually has insurance and the means to pay a judgment. Naming the right defendants from the start avoids having to amend your claim later.

Sources

• Bazley v. Curry, 1999 CanLII 692 (SCC)
• Ontario: suing someone in Small Claims Court

Read next: Negligent Misrepresentation: When Careless Advice Costs You Money

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

Photos from Unsplash: a judge's gaven on a wooden table · building interior with chandeliers and desks.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.