What is employer liability? Employee caused accident?

What the Law Says

Japanese law imposes strict liability on employers for torts committed by employees in the course of employment. The employer does not need to be at fault — liability arises solely from the employment relationship and the work context.

Under Article 715 of the Japanese Civil Code, an employer is liable for damages caused by an employee's unlawful act committed 'in the course of performing duties.' This applies even if the employer exercised due care in hiring or supervision.

The key requirement is that the employee’s act must have a 'sufficient connection' to their assigned duties — not whether the act was authorized, but whether it occurred within the scope of employment. For example, a delivery driver causing a traffic accident while making deliveries would typically fall under this rule.

Once liability is established, the employer may seek reimbursement (indemnity) from the employee only if the employee acted with intent or gross negligence — but this does not affect the injured third party’s right to full compensation from the employer.

Statutory Text

An employer shall be liable to compensate any third party for damage caused by an employee in the course of performing duties.

— Civil Code, Art. 715, para. 1

Statutory Text

The employer may claim indemnity from the employee who caused the damage with intent or gross negligence.

— Civil Code, Art. 715, para. 2

What to Do

Sources