BL – May 2023 – L1 – SA – Q8 – Employment Law

Identify the employer's obligation when an employee incurs expenses on behalf of the organization.

Question

Where an employee incurs expenses on behalf of his employer in his normal course of duty, he must be:

A. Penalised
B. Indemnified
C. Surcharged
D. Admonished
E. Sanctioned

Answer

Explanation:
Option B is correct because indemnification is the employer’s responsibility to reimburse or compensate an employee for any expenses or losses incurred while performing their duties. This principle ensures that employees are not out-of-pocket for fulfilling their roles and carrying out business-related tasks.

Tags: Employee Expenses, Employer Obligations, Indemnity
Level: Level 1

Topic: Employment law
Series: MAY 2023

Uploader: Theophilus