Vicarious liability

Vicarious Liability

A form of liability where the defendant is held responsible for a tort committed by a third party.

Purpose of Vicarious Liability

To ensure the victim of the tort can receive compensation, often targeting the employer due to their financial stability compared to the employee.

Two-Stage Test

Involves a relationship of employment or similar, and a close connection between the wrongful conduct and the actions the tortfeasor was allowed to do.

Employee

An individual under a contract of employment, where the employer can be held liable for the employee's torts.

Independent Contractor

A self-employed worker under a contract for service, where only the contractor can be sued for their torts.

Employee Status Test

Distinguishes an employee from an independent contractor based on being told what and how to do the work.

Integration Test

Determines if a worker is an employee by assessing if their work is fully integrated into the business or merely accessory to it.