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If an employee commits fraud and/or acts in a deceitful manner, is the employer vicariously liable? Can a third party bring a claim directly against the employee?

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Published by a UUÂãÁÄÖ±²¥ Employment expert
Published on: 16 October 2017
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When it comes to the question of who is liable in tort for the fraudulent/dishonest acts of an employee (and assuming that, aside from any potential criminal liability, the employee has been guilty of a tort towards the person injured), the employee as tortfeasor will be liable, and the employer may also be liable if it can be established that the employee, in committing the tort, acted within the scope of their Authority or employment.

Where a tort has been committed—employee liability

As a general rule, an employee who commits a tort is liable in Damages to the person injured, and his liability is not affected by the existence of a Contract of employment or, where he commits the tort in the course of his employment and within the scope of his authority, by the existence of

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Authority definition
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The public sector body procuring the project. This might, for example, be a local authority, an NHS trust, a central Government Department or a Non-Departmental Public Body.

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