The law does not wait for harm to occur before imposing duties on employers. Long before an employee causes injury to a customer, damages a client's property, or engages in misconduct toward a colleague, the employer's obligations have already crystallized. These obligations exist independently of any wrongdoing by the employee and attach to the very act of bringing someone into the organization and directing their work. When courts speak of negligent hiring and negligent supervision, they are identifying breaches of the employer's own duty of care, separate and distinct from any fault of the employee. This represents one of the most significant sources of liability for Canadian business owners because it holds the employer accountable not for what the employee did, but for what the employer failed to do in selecting, monitoring, and managing that person.
The foundation of this liability rests on the general principles of negligence that govern Canadian tort law. In common law provinces, the courts recognize that where a person assumes a position that creates risks to others, that person must take reasonable steps to minimize those risks. When a business owner decides to hire employees, the owner is making a choice that will affect not only the business but everyone who comes into contact with those employees. Customers, clients, vendors, other employees, and members of the public may all interact with the people an employer selects. The employer, having made the decision to delegate tasks and responsibilities to others, cannot simply close their eyes to who those people are or how they perform. The duty to exercise reasonable care in hiring arises the moment the decision to employ someone is made, and the duty to supervise continues for as long as that employment relationship exists.