Vicarious Liability Flashcards
What is VL?
One person is made jointly liable for tort committed by another.
What is the purpose of VL?
The idea that an employed has control over their employees and therefore should be liable for the torts committed by the employee.
4 justifications for imposing VL
- Ensures V can gain compensation for the harm they suffered.
- The employer makes a profit from the workers so they should pare the risk of potential liability
- Organisations can assess risks which my deter the threat of VL
- Employer is responsible for hiring, firing and disciplining any incompetent workers
What is the 3 step test?
- Was the act or omission complained of a tort?
- Was the person who committed the tort an employee?
- Did the employee commit the tort in the course of his employment?
How to prove the person committed the tort was an employee?
- Control test
- Integration test
- Economic reality test
- Types of work which are problematic require a judge to be called on to make decisions.
What is the control test? + Case
The worker is an employee where someone controls what a person does and the way in which it is done: MERSEY DOCKS v GOGGINS LTD
What is the integration test?
Someone whose work is fully integrated into the business will be an employee.
What is the economic reality test and where does it originate from?
From READY MIXED CONCRETE v MINISTER OF PENSIONS.
Takes into account all factors of the relationship to identify the status of the worker.
What are the factors of the economic reality test?
- An employee is unlikely to use their own equipment
- An employee will receive regular payments for a defined pay period
- Employee has tax and national insurance deducted from their wage
- Employee in the contract with the employer
- Lack a degree of independence and flexibility
Explain how certain types of work which are problematic
- Casual workers are usually viewed as independent contractors rather than employees: CARMICHAEL v NATIONAL POWER
- Agency workers on temporary contracts acquired through an employment agency may be treated as employees of the agency.
- Outworkers are employees: NETHERMERE v TAVERNA
- Labour-only sub-contractors are self-employed
- Directors may be employees
- Doctors and nurses are employees of the hospital
- Under POLICE ACT 1966 Chief officer of police are liable for officers
How can the tort be committed in the course of employment?
- Employer VL for authorised act done in unauthorised way: CENTURY INSURANCE v NORTHERN IRELAND TRANSPORT
- Employee’s acts are within the course of their employment during authorised period of work and minutes before and after
- Employee travelling to and from work ordinarily a not regarded as being within the course of employment: SMITH v STAGES
- A tort committed by an employee while travelling which is the essence of that job will be in the course of employment
- Employer can be liable for expressly forbidden act if the ban affects the manner which the employee performs his duties: ROSE v PLENTY
How could the tort be committed by an employee closely connected to his employment?
- Employees act in ways which have no express authority but are closely connected to employment that there is implied authority to act: POLAND v JOHN PARR & SONS
- An employee will not be vicariously liable for a tort arising out of conduct unconnected with employer’s work: MAKANJUOLA v METROPOLITAN POLICE COMMISSIONER
- Employee’s wrongful conduct is not in employer’s interests but it was so closely connected to nature of employment that they’re liable: MOHAMUD v WM MORRISONS SUPERMARKETS
A person will be liable for torts committed by independent contractor only if:
- The contractor was authorised to carry out the tort: ELLIS v SHEFFIELD GAS
- A person has breached a non-delegator duty imposed by statute or common law: WOODLAND v ESSEX COUNTY COUNCIL
Other areas of VL?
- Owner is a vehicle is VL if employee drives it negligently in course of employment: ORMROD v CROSVILLE MOTOR SERVICES
- In ARMES v NOTTINGHAMSHIRE COUNTY COUNCIL the relationship requirement might now be satisfied as the person who committed the tort is acting as an integral part of D’s organisation