Vicarious Liability Flashcards
What are the 3 justifications for VL?
- Protecting the C
- Protecting the employee
- Improving safety standards
What is the definition of Vicarious Liability?
A tort committed by an employee during the course of employment which makes the employer liable
After being sued, which act can the employer then sue the employee under?
Civil Liability Act 1978
What are the 3 elements to establishing VL?
- Wrongdoer has committed a tort
- Wrongdoer concerned has employee status
- During course of employment
What is the difference between a contract of service and a contract for service?
A contract of service = employment contract
A contract for service = self-employed
What are the 4 tests which can be used as methods of testing employee status?
The Control test
The Integration test
The Common Mission test
The Economic reality/ multiple test
Explain the control test
An employee is a worker who is told what to do and how to do it, whereas an independent contractor would just be told what to do. Original test. Major problem = highly-skilled workers would not be told how to do their job
What case can we use for the control test?
Dragonfly Consultancy Ltd V HMRC
What is the PoL for Dragonfly Consultancy Ltd V HMRC?
Some degree of control over the manner in which work is done will be ‘an essential ingredient of a contract of employment’. Highly-skilled workers - control will be light handed
Explain the Integration test
The more closely a worker is involved with the core business of the employer, the more likely they are to be an employee. An attempt to solve problems with the control test. But, not always certain who is integral or even what the business is
Explain the Common Mission test
Does the employer have a common mission/ purpose with the worker, so that the essential purpose of the workers activities was to further the employers objective (Child Welfare Society 2012)
Explain the Economic Reality/ multiple test
Having considered all the facts of a case, the court decides whether the overall picture of a worker is closer to an employee or independent contractor
What case can be used in relation to the Economic Reality/ multiple test?
Ready Mix Concrete V Minister of Pensions
What is the PoL for Ready Mix Concrete V Minister of Pensions?
Decided that drivers were independent contractors as they owned their own major assets and profit depended on their decisions
What are the 3 conditions for a contract of service?
- Wage or other remuneration
- Subject to other’s control to such a degree as to make that other the master
- Other provisions of the contract are consistent with it being a contract of service