Responsibility on employer for misconduct of employees

If an employer X employs Y to perform duties on his behalf that involve customer interaction, then will X be responsible for any mischief done by Y while on duty. For e.g. if Y misbehaves with cutomers of X or causes mental or financial damage to the customer then how much liability comes on X ? This is assuming the case where Y was properly trained by X and also instructed on his limits while interacting with the customers.

Answers (1)

229 votes

Initially we would like to review the contract of employment.

But in general,

Under the Indian Contract Act,

the principal is liable for the act of the agent done in course of his duty. 

Both the agent and principal are liable jointly and severally for the misconduct by the agent in course of his duty.

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