An important recent ruling of the Italian Supreme Court has clarified the issues which a company may face should one of its employees, during a secondment, cause damage to the company to which he/she is seconded.

In particular, the Italian Supreme Court considered how business risk principles apply normally to such companies. According to the Court, such principles mean that any damage caused by an employee placed on secondment will be the responsibility of the seconding employer and will be remedied at the company’s expense. In support of its judgment, the Court relied upon Section 2049 of the Italian Civil Code which regulates the liability of a company for the damage caused by its employees.

In summary, the Court stated that the secondment does not interrupt the link between the organisational interest of the company and the performance of that interest by the employee, even where the employee is seconded to another company.