Scope of employment: Overview, definition, and example
What is the scope of employment?
The scope of employment refers to the range of activities and tasks that an employee is authorized to perform on behalf of their employer. It defines the boundaries within which the employee is expected to act while performing their job duties, including any actions or decisions they make in connection with their employment. This concept is important in determining whether an employee’s actions are covered by the employer’s liability insurance or whether the employer is responsible for the employee’s actions, especially in cases involving torts or other legal matters.
For example, if an employee is asked to deliver goods as part of their job, their actions while delivering goods fall within the scope of employment. However, if the employee decides to use company resources to run a personal errand, that may fall outside the scope of employment.
Why is the scope of employment important?
The scope of employment is important because it helps establish the employer’s liability in various situations. For example, if an employee commits a wrongful act (e.g., causing an accident) while performing duties within the scope of employment, the employer may be held responsible under the legal doctrine of "respondeat superior," which holds employers liable for actions taken by employees during the course of their job. On the other hand, if the employee acts outside the scope of employment, the employer is typically not responsible.
For employers, understanding the scope of employment helps to manage legal risks and ensure that employees are clear on the tasks they are authorized to perform. For employees, it provides clarity about their responsibilities and helps avoid misunderstandings regarding their actions at work.
Understanding the scope of employment through an example
Let’s say a delivery driver is working for a company and is tasked with delivering packages to various locations. If the driver gets into an accident while making a delivery, the company is likely liable because the driver was acting within the scope of employment. However, if the driver takes a detour to visit a friend and causes an accident during that time, the company may not be held liable, as the employee’s actions were outside the scope of employment.
In another example, a marketing manager creates promotional materials for a company, which falls within their job duties. If the manager starts using company resources to create personal advertisements on the side, those actions would likely be outside the scope of employment.
An example of a scope of employment clause
Here’s how a clause like this might appear in an employment contract:
“The Employee agrees to perform duties assigned by the Employer, which are within the scope of their role as defined in this Agreement. The Employer shall not be liable for any actions taken by the Employee outside the scope of their employment, including personal activities or tasks not authorized by the Employer.”
Conclusion
The scope of employment defines the limits of an employee’s duties and responsibilities in relation to their job. It helps to determine when an employer is liable for the actions of their employees and ensures both the employer and employee are clear on the expected activities within the workplace. Properly defining the scope of employment in contracts and policies can help mitigate risks, clarify roles, and ensure compliance with legal standards.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.