Ask Gulf News: Can a construction company be held liable for injuries caused by its worker's actions on the job?

Question: I am the owner of a construction company, during construction, one of my workers dropped a wooden bar over the head of a lady while she was crossing the street and get injured. The lady is claiming the company compensation for injuries and for losing her job because of her injuries. Is the company responsible for such compensation even though the worker’s deed was a personal act?

Answer: According to Article (266) of the Federal Decree by Law No. (25) of 2025 Promulgating the Civil Transactions Law “1. A principal shall be liable for the harm resulting from a harmful act committed by their subordinate, when it is committed by them in the performance of their duty or because of it.2. The relationship of subordination exists, even if the principal is not free to choose their subordinate, when the principal has actual authority over them in supervision and direction.” And as per Article (267) of the same law, “The person liable for the act of another, whether a supervisor or a principal, has the right of recourse against the person who caused the harm to the extent that this other person is liable for compensation.” 

The lady has the right to claim compensation from the company based on the liability relationship between the company and its worker, and that the employer is responsible for the worker. The court will have the solely jurisdiction to estimate this compensation according to the situation and the documents submitted. 

According to the Court of Cassation ruling - Dubai dated 02-09-2025 In Cassation No. 2025/35 Administrative Cassation “ the employer's liability arises when the employee commits an error while performing their duties, or when the job is the direct cause of the error, or necessary to enable the employee to commit it, or when the employee exploits their position or it assists them in committing the unlawful act, or provides them with an opportunity to commit it. In these cases, the injured party has direct recourse against the employer, without needing to examine whether the latter committed an error or not. This liability arises only when a relationship of subordination exists between the employer and the employee, and when the employee commits an error during or because of the performance of their duties, resulting in harm. The employer has the right to seek recourse, against his employee who caused the harm, for any compensation paid to the injured party."