No Vicarious Liability of Employers for Data Breach – A Good News Story from the UK

A continuing anxiety for Canadian business is their liability for the deliberate wrongdoing of an employee, who for reasons of his or her own, steals personal information and releases it publically. Employers with even the most robust of cybersecurity and privacy protections can still fall victim to a rogue employee.

There is currently no final decision in Canada on whether a corporation can be vicariously liable for the actions of a rogue employee who breaches the privacy of the company’s employees or customers. To date, that issue has been addressed only at the certification stage of class proceedings on a preliminary basis.

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