Hollis v Vabu Pty Ltd [2001] 207 CLR 21 tells us some of the important considerations that a Court will look to distinguish a relationship or obligation created between an employer and employee or an employer and contractor. Vicarious liability may result in an employer being held liable or responsible for damage or loss suffered or caused by an employee during the course of their employment. Vicarious liability generally does not apply in relationships between an employer and contractor. Before you commence employment with a company or organisation, you should understand the arrangements and obligations flowing as a result of the type of employment relationship that exists with your employer.