Essay on Employee Is An Agent Of The Business

1032 Words Jul 7th, 2015 5 Pages
As the nature of our society has become more litigious, businesses must do all that they can in order to limit their liability when an employee engages in an illegal act or an employee creates conditions that might put the business in violation of the law. A few simple examples of an employee creating a liability for a business include if a field worker steals from a customer’s home, a store clerk assaults a customer in a store, a worker posting nude photos around his work area or a salesman sells a business service, keeps the payments for himself and he didn’t inform the business of the sale. In each case the employee is not committing their action under the direction of the business, but in some cases, they are acting as an agent of the business so any act they commit is a reflection of the business. The thieves in the example may have had a criminal record for past thefts and a business should avoid hiring known thieves. Or the photos posted at the workstation should have been removed immediately by a supervisor so that someone could not say that the business condones the photos and the hostile atmosphere toward women that the photos create. It always in the best interest of business to separate themselves from individuals whose actions might bring legal actions against the business for actions it did not commit nor condones.
If the economic environment changes for the worst, a business may need to perform a reduction in force also known as a “layoff,” which results in…

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