Driving for work when you are an employee or independent contractor
If you are an employee and you were at fault in a car accident, in some circumstances your employer may be responsible to pay for the damage you caused. This is called 'vicarious liability'.
If you are an independent contractor driving your own car and you are at fault in a car accident, you will be responsible for any damage caused as a result of the accident.
Are you an employee or an independent contractor?
It can be difficult to work out if someone is an employee or an independent contractor. For example, a person might be an employee if they:
- get sick leave and annual leave
- have tax deducted from their pay by the person paying them
- are supplied with tools and equipment
- are told what hours to work
- fill out timesheets
- are directed when and how to perform the tasks of their job
- receive superannuation contributions from their employer
- are covered for workers compensation by their employer.
Working out whether you are an employee or an independent contractor can be complicated. If you are unsure you should get legal advice.
If you are an independent contractor and you caused a car accident, you should get legal advice.
Does the car you were driving belong to you?
An independent contractor who causes an accident while driving a car belonging to the person that contracted (hired) them, may be able to claim that the person who contracted them is liable.
If you are an independent contractor and you caused a car accident, you should get legal advice.
If you are an employee driving your own car but you are driving for your employer's purposes, your employer may be liable. This is called 'vicarious liability'.
If your employer doesn't accept responsibility for a car accident you were involved in, you should get legal advice.
Is your employer liable for your actions?
If you caused an accident while driving for work, your employer may be responsible for the damage you caused to another car or property. This is called 'vicarious liability'.
Your employer will usually be responsible if you were driving the car for work purposes, for example, if you were driving the car to pick something up for your employer.
Sometimes your employer may not be liable for an accident you caused whilst driving for work. Your employer will usually not be liable if:
- the accident involved your 'serious or wilful misconduct' such as driving while drunk or intentionally causing the accident
- you used the car in a way that was not permitted by your employment agreement, such as allowing your partner to drive the work car
- you were using the work car for your own purpose, such as picking up your friend from the airport.
If your employer is responsible for an accident caused by you, the owner of the other car can still claim against you. If your employer does not accept responsibility you may be able to make a claim (called a 'cross-claim') against your employer.
If the owner of the other car says you should pay for the damage you caused while driving for work, you should get legal advice.
If your employer is responsible for an accident caused by you they usually cannot claim against you for the damage to their car or the other car.
If your employer, their insurance company, or another driver is claiming the cost of repairs from you, you should get legal advice.