This article considers the exposure of employers in the UK, a common law jurisdiction, in which vicarious liability has evolved through a binding system of precedents and in the UAE, where the principle that an individual or business may be vicariously liable for the acts and omissions of his/her workers is set out in UAE Federal Law No. 5/1985 (the Civil Code).

Introduction

Vicarious liability is the holding of a third party responsible for the actions and harm cause by another. The most frequent form of vicarious liability is that of an employer for the acts and omissions of an employee. As businesses expand globally it is essential that employers appreciate the scope of vicarious liability and the potential financial exposure in each jurisdiction within which they operate and, where appropriate, take steps to mitigate the impact of such exposure.