Question
eexplain simpler terms Duty to indemnify the employee against liabilities and losses
An employee on duty does so for the benefit of the employer. Any expenses, losses or liabilities
that the employee suffers are chargeable to the employer:Re Famatima Development
Corporation Ltd.42The employer is merely restoring the employee to his/her original position.
The employee would not have incurred or suffered loss but for the employer’s business.The duty
is capped by the requirement of expenses reasonably incurred on behalf of the employer.
Egregious or extravagant spending would not qualify for indemnity.
An employee on duty does so for the benefit of the employer. Any expenses, losses or liabilities
that the employee suffers are chargeable to the employer:Re Famatima Development
Corporation Ltd.42The employer is merely restoring the employee to his/her original position.
The employee would not have incurred or suffered loss but for the employer’s business.The duty
is capped by the requirement of expenses reasonably incurred on behalf of the employer.
Egregious or extravagant spending would not qualify for indemnity.
Answers
GPT-4o mini
Sure!
The "duty to indemnify" means that an employer has to cover costs or losses that an employee faces while they are working, as long as those costs are related to doing their job for the employer's benefit.
Here's a breakdown:
1. **Employee's Role**: When an employee is doing their job, they are acting for the company’s advantage.
2. **Employer's Responsibility**: If the employee faces any expenses or loses money because they were working, the employer is responsible for paying those costs. This means the employer is essentially helping the employee get back to where they were before the loss.
3. **Connection to Work**: The employee would not have lost money or incurred expenses if they weren’t working for the employer.
4. **Reasonable Expenses Only**: The employer will only cover expenses that are reasonable. If an employee spends a lot of money on something excessive or unnecessary, the employer does not have to pay for that.
In short, if an employee spends money or faces losses while working for the company, the employer should help cover those costs, but only if the expenses were reasonable.
The "duty to indemnify" means that an employer has to cover costs or losses that an employee faces while they are working, as long as those costs are related to doing their job for the employer's benefit.
Here's a breakdown:
1. **Employee's Role**: When an employee is doing their job, they are acting for the company’s advantage.
2. **Employer's Responsibility**: If the employee faces any expenses or loses money because they were working, the employer is responsible for paying those costs. This means the employer is essentially helping the employee get back to where they were before the loss.
3. **Connection to Work**: The employee would not have lost money or incurred expenses if they weren’t working for the employer.
4. **Reasonable Expenses Only**: The employer will only cover expenses that are reasonable. If an employee spends a lot of money on something excessive or unnecessary, the employer does not have to pay for that.
In short, if an employee spends money or faces losses while working for the company, the employer should help cover those costs, but only if the expenses were reasonable.