Leadership Means Liability: What You Owe Your Team Legally
Being in charge isn’t just about big decisions or big titles. It’s about responsibility. And data published by People Management found 2/5(39%) of employees don't think they have a good manager. Another found that 82% of Americans would potentially quit their job because of a bad manager.
Being a good manager means being liable for everything. Read on for what you actually legally owe your employees.
What Employees Expect From Managers
Gen Zs are changing everything.
A Deloitte survey in 2025 found that 54% of Gen Z workers would quit if they didn’t feel supported by their manager. Nearly half expect mental health check-ins as part of their work culture. There's no more “toughing it out” like the attitude older generations grew up with. We're sure the older generations are jealous of how flexible workplaces are in favor of employees.
It's crazy to think how workplaces have changed. Managers aren’t just supervisors anymore. They’re expected to protect well-being, maintain open communication, and treat employees as individuals, not just by their job titles.
And that’s where the pressure comes in. Every time someone calls in sick, reports burnout, or mentions stress, the responsibility lands on you to respond properly.
Being a manager is definitely less easy now, but it's at the expense of better workplace environments.
When Leadership Means Liability
It always does.
Once you manage people, you’re accountable for how your actions, or inaction, affect them. That includes mental health, safety, and fair treatment. You can’t delegate that.
Liability happens when something under your control goes wrong. Maybe you didn’t follow up on a harassment complaint. Maybe someone got hurt because you skipped a safety check. Or maybe your team is working unpaid overtime, and no one logs it. These things seem small until they aren’t.
For these issues, every business should have workers' compensation insurance. It's a legal requirement in every US state (apart from Texas) for any business that has more than one employee. It covers:
Medical expenses
Lost wages
Job retraining
Permanent injury benefits
Employers liability
Survivor benefits and death benefits
You can find out more here about the correct type of policy that keeps you liable for your employees.
You don’t have to mean harm to be liable. The law looks at responsibility.
What You Legally Owe Your Team
The law gives employees rights. As a manager, you’re the one who makes sure those rights aren’t broken. At a minimum, you legally owe your team:
Health and safety: Reporting hazards, ensuring equipment is functioning properly, and following up on incidents are essential.
Fair pay and conditions: Everyone has a right to proper pay, breaks, and realistic hours.
Equality: Discrimination laws protect against unfair treatment based on gender, race, disability, religion, or age.
Confidentiality: Anything medical or personal must stay private.
Mental health support: Duty of care now includes mental well-being.
Most claims happen because a manager didn’t act when they should have.
How to Be a Good Manager
Good management protects everyone. You, your team, and the company.
You should be:
Setting clear boundaries
Writing things down
Confirm instructions and expectations in emails.
If a disagreement happens later, you’ll have proof of what was said.
Effective communication prevents most issues before they arise. Gallup’s 2024 report found that 70% of team engagement depends directly on their manager, but only a third of employees say they trust theirs. That’s the gap good managers close.
You don’t need to be perfect. Just consistent. Follow up when someone raises a concern. Treat people fairly. Avoid promises you can’t keep.
Training always helps. Employment law changes rapidly, particularly in areas such as mental health and hybrid working. Mental health is one of the biggest talking points in employee management now.
Being a good leader is about being reliable, not liked. You can’t lead people without being responsible for them. There are so many things that can go wrong in the workplace simply because of bad management. And we're sure most of you have worked in an office or workplace with a bad manager or two.
