Vicarious LIability Flashcards
What is vicarious liability?
Where one person is made jointly liable for a tort committed by another
What are justifications for vicarious liability?
- It ensures the victim has a means of gaining damages as an employer will be in a better financial position
- the employer makes profit from the employee so they should bear the risk of potential liability arising from them
- employer’s will take more precautions to help prevent liability
- the employer should train the employee effectively to prevent liability
What three things have to be proved to make an employer vicariously liable?
- The act or omission must be a tort
- the person who committed the tort must be an employee
- the employee must have committed the tort in the course of his employment or in circumstances closely connected to his employment
What are the three tests used to decide if the tort was committed by an employee?
Control test, integration test and economic reality test
What is the control test?
A worker is an employee when someone controls what a person does and the way in which it is done
What case corresponds with the control test?
MERSEY DOCKS V COGGINS LTD
What does the case MERSEY DOCKS V COGGINS LTD say about the control test?
The control test is useful where workers have been lent to another
What happened in MERSEY DOCKS V COGGINS LTD?
A crane driver was lent by Mersey Docks to a stevedore company. The crane driver negligently injured someone but the court held that he was an employee of Mersey Docks and not the stevedore company as they weren’t telling him how to operate the crane
What is the integration test?
Someone whose work is fully integrated into the business will be an employee
Which case established the economic reality test?
READY MIX CONCRETE V MINISTER OF PENSIONS
What is the economic reality test?
A modern test which takes into account all the factors in the relationship in order to identify the status of the worker
What are examples of factors used in the economic reality test?
An employee is unlikely to own the equipment they use, has NI tax deducted by the employer and receive regular payments
What does the case CARMICHAEL V NATIONAL POWER say about being an employee?
Casual workers are usually viewed as independent contractors rather than employees
What does the case NETHERMERE LTD V TAVERNA say about employees?
Outworkers are employees
What does the POLICE ACT 1996 state about police employees?
The chief officer of police for an area will be vicariously liable for any tort committed by his officers