In Brink's Global Services Inc and others v Igrox the Court of Appeal held that an employer was liable for loss caused by the theft of a third party's goods by one of its employees. In this case, theft by an employee from a container that only the employer and its employees were authorised to enter and which the employee had been instructed to fumigate was a risk that was reasonably incidental to the purpose for which he had been employed. There was therefore a sufficiently close connection between the employee's wrongful act and the purposes of his employment for the employer to be liable.
The case reinforces the need for employers to assess the risks of liability to third parties that employees could expose them to and to provide them with appropriate instruction and supervision. However, since an employer may be liable to a third party regardless of having done all it reasonably could to avoid the risk materialising, it should have adequate insurance in place in the event of claims being brought against it.