ABSTRACT

For centuries employers have been liable for the wrongdoing of employees. Among the reasons given for this rule is the undoubted fact that the purpose of employment is to allow the employer to profit from the employee’s work. The ethical principle of justice would support the argument that as employers take the profit, so the risk should belong to them. In theory at least, the employers are in a better position to bear the risk especially as insurance is available, the costs being included in the calculation of prices and therefore paid ultimately by the customers, whereas an individual might find personal liability insurance only available at a prohibitive cost.