Third party liability

Third party liability occurs when an employee is unable to work through the fault of a third person. Causes of the employee's incapacity to work can be involvement in a fight or a car accident through no fault of their own.

The employer has the option to sue the person who caused the incapacity for work for compensation. In the event of a successful lawsuit, that person could be sentenced to continued payment of wages or the cost of bridging the loss of work.

Summary

  • a third person is responsible for an employee's incapacity for work
  • the employee's employer can sue the third party for damages
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