On 17 February 2026, the Victorian government passed the Justice Legislation Amendment (Vicarious Liability for Child Abuse) Bill 2025. This bill amends the Wrongs Act 1958 (Vic) so that organisations can now be held liable for sexual abuse carried out in relationships akin to employment. In practice, this could cover abuse perpetrated by priests and potentially other volunteers. This legislation overturns and significantly reshapes the legal landscape created by the High Court’s decision in Bird v DP (a pseudonym) [2024] HCA 41 (Bird), which found that the Catholic Church could not be held vicariously liable for the sexual abuse of a priest because the priest was not considered to be an employee.
The Bill also provides that a claim may now be brought on previously barred cause of action or settled cause of action resolved before 1 July 2018 or between 13 November 2024 and the date the amendments come into effect to address the consequences of effectively reversing the Bird ruling.
What does the legislation do?
The Bill sets the circumstances in which organisations can be held vicariously liable for child abuse, including historic child abuse. An institution will now be vicariously liable for the abuse of a child where:
- it places an individual (employee or someone akin to an employee) in a role that enables abuse; and
- that person commits the abuse.
This extends vicarious liability beyond traditional employment relationships to people who have authority, trust, and influence over children. Factors to determine whether someone is akin to an employee include:
- whether the individual’s activities are integral to the institution’s work and benefit the institution;
- the level of institutional control over how they perform those activities; and
- whether the individual has authority, power or control over the child, the trust of the child, or the ability to achieve intimacy with the child.
The Bill clarifies that independent contractors are not considered akin to employees. However, this leaves open the possibility that members of religious ministry and volunteers may now fall within the category of individuals for whom institutions can be vicariously liable.
What does this mean in practice?
- Victim survivors now have greater opportunity to seek compensation for abuse perpetrated by priests and religious ministers. This may lead to an increase in civil claims that were previously barred as a result of the decision in Bird.
- Organisations exercising power, authority or control over children should ensure they have appropriate safeguards in place to mitigate abuse, even where there is no employment relationship.
- It remains crucial to ensure that all individuals engaged in your organisation are appropriately screened and participate in regular child safety training.
How we can help
Our child safety team are available to support you to ensure your organisation has appropriate processes and safeguards in place to meet your duty of care and mitigate risk of liability. Our disputes team are also able to assist with any advising on or responding to potential claims or liability arising from this reform.
Contact us
Please contact us for more detailed and tailored help.
Disclaimer: This article provides general information only and is not intended to constitute legal advice. You should seek legal advice regarding the application of the law to you or your organisation.