Employees and indemnities

Abstract

This article discusses the circumstances in which employees can be, or can insist on being, indemnified by their employer against expenses or liabilities incurred in connection with their job. It suggests that there is scope at common law for a broader view as to the ‘necessity’ for an implied right of indemnification.It also questions whether the restrictions imposed by statutes such as the Corporations Act on the indemnification of employees who are also directors or officers of a corporation should be re-evaluated so as to better align with the common law position.