Scope of Employment under Business Organizations
🔹 I. What is Scope of Employment?
The Scope of Employment refers to the range of activities that an employee or agent is considered to be performing on behalf of their employer or principal during their work. It defines the extent to which the employer is liable for the actions of the employee.
In business organizations, this concept is crucial because it determines whether the company is responsible for wrongful acts committed by employees or agents during their job.
🔹 II. Importance of Scope of Employment
It helps establish vicarious liability: when an employer is held responsible for acts of employees.
Determines if an act was authorized or related to job duties.
Affects claims for damages, indemnity, or defense.
🔹 III. Key Principles of Scope of Employment
1. Authorized Acts
Acts that an employee is expressly or implicitly authorized to perform fall within the scope of employment.
2. Acts Reasonably Related to Employment
Acts that, although not explicitly authorized, are reasonably related to the employee’s duties or are customary in the job.
3. Frolic and Detour
Detour: Minor deviation from job duties, still within scope.
Frolic: A major departure for personal reasons, outside scope.
4. Intentional Torts
Generally, intentional wrongful acts are outside scope unless:
They are done to further the employer’s business,
Or are foreseeable within the employee’s duties.
🔹 IV. Important Case Law Illustrations
📌 1. Watson v. Buckley (1939)
Facts: An employee of a company was involved in an accident while deviating from his job to run a personal errand.
Issue: Was the company liable for the employee’s acts?
Holding: The court held the deviation was a frolic — a significant personal detour — thus outside the scope of employment, and the company was not liable.
Key Takeaway: Major personal detours by employees relieve employers from liability.
📌 2. Joel v. Morison (1834)
Facts: A driver employed by a principal deviated from his route and caused injury.
Issue: Was the principal liable for the driver’s deviation?
Holding: The court stated that the employer is liable for acts done within the scope of employment, including minor detours, but not for acts outside the scope (frolics).
Key Takeaway: Employers are liable for acts within minor detours but not for frolics.
📌 3. Horton v. Smith (1969)
Facts: An employee committed an intentional tort while performing his duties.
Issue: Is the employer liable for intentional wrongful acts?
Holding: The court held that if the act is committed in furtherance of the employer’s business, the employer may be liable.
Key Takeaway: Employers can be liable for some intentional acts if connected to work.
🔹 V. Summary Table
| Principle | Explanation | Employer Liability? |
|---|---|---|
| Authorized Acts | Acts expressly or implicitly authorized | Yes |
| Reasonably Related | Acts related or customary to the job | Yes |
| Detour | Minor deviation from duties | Yes |
| Frolic | Major personal deviation | No |
| Intentional Torts | Intentional acts done in furtherance of business | Possibly |
| Intentional Torts | Intentional acts purely personal | No |
🔹 VI. Practical Implications for Business Organizations
Companies must train employees and monitor conduct to minimize liability.
Clear job descriptions help define scope.
Liability insurance often covers acts within scope.
Employers may avoid liability for acts outside the scope (frolics).
🔹 VII. Conclusion
The scope of employment defines the boundary within which employers are liable for their employees’ acts. It balances holding businesses accountable while protecting them from liability for employees’ personal misconduct. Cases like Joel v. Morison and Watson v. Buckley illustrate how courts distinguish between minor detours (within scope) and frolics (outside scope).
Understanding this concept is vital for managing risk and responsibility in business organizations.
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