GermanyWhat is an employer's vicarious liability?
In Germany, an employer is vicariously liable for torts committed by employees during work duties under BGB § 831 — unless they prove due care in selecting and supervising the employee.
What the Law Says
German civil law imposes vicarious liability on employers for harm caused by employees while performing assigned tasks. This is not based on the employer’s personal fault, but on their organizational responsibility.
Under BGB § 831 (1), an employer ('Geschäftsherr') must compensate third parties for unlawful damage caused by an employee ('Verrichtungsgehilfe') in the course of carrying out assigned duties. This liability arises automatically — no proof of employer negligence is needed.
However, the employer may avoid liability by proving they exercised 'im Verkehr erforderliche Sorgfalt' (the care required in commercial dealings) both in selecting the employee and, where applicable, in providing equipment or directing the work. Alternatively, they may show the damage would have occurred even with proper care.
Paragraph (2) extends this liability to subcontractors who assume managerial responsibility for the same type of activity — meaning liability flows up the chain of operational control.
Statutory TextWer einen anderen zu einer Verrichtung bestellt, ist zum Ersatz des Schadens verpflichtet, den der andere in Ausführung der Verrichtung einem Dritten widerrechtlich zufügt. Die Ersatzpflicht tritt nicht ein, wenn der Geschäftsherr bei der Auswahl der bestellten Person und, sofern er Vorrichtungen oder Gerätschaften zu beschaffen oder die Ausführung der Verrichtung zu leiten hat, bei der Beschaffung oder der Leitung die im Verkehr erforderliche Sorgfalt beobachtet oder wenn der Schaden auch bei Anwendung dieser Sorgfalt entstanden sein würde.
— BGB § 831 — German Civil Code
What Courts Have Said
German courts consistently uphold the principle that employer liability under § 831 is objective and broad — but exculpation remains a realistic defense when rigorously documented.
The Federal Court confirmed that employers bear full liability for employee torts during work duties under § 831 BGB, but may escape liability by proving diligent selection (e.g., background checks, qualifications review) and supervision (e.g., training, safety protocols, oversight). Mere formal compliance is insufficient — courts assess actual, reasonable diligence.
What to Do
Document all hiring checks (references, certifications, criminal record screenings where lawful).
Provide role-specific training, written instructions, and regular safety supervision.
Keep records proving equipment was maintained and work processes were properly directed.
If sued, promptly gather evidence of due care — not just policies, but their real-world application.
Sources
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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.
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