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Law - vicarious liability key terms

Vicarious liability is a form of liability by which the defendant is liable for a tort committed by a third party

  • The main purpose of VL is to ensure to victim of the tort can receive compensation for the injury or damage suffered

  • In the workplace the employer will usually be in a better financial position to pay than one of their employees

  • The claimant can sue the employee who is still jointly liable with the employer for their actions, but the employer is more likely to have the means to pay for the damages

  • Employer is entitled to recover any compensation paid to C from the employee, e.g through wage deduction

Two stage test to see if one person can be made liable for a tort committed by another:

  1. The relationship between D and the tortfeasor must be of employment or “akin to” (relationship of “employment”)

  2. There must be a close connection between the wrongful conduct and acts the tortfeasor was allowed to do so it can be fairly and properly be regarded as done by the tortfeasor in course of employment (close connection test”)

Stage one

Employee relationship

  • An employer is only liable for torts by employees

  • If the person is injured because of the negligence of an independent contractor, they must sue the independent contractor

Control test

  • One feature of an employment relationship is the ability to control the way a job is done. An employee is told what to do and how to do it, an independent contractor is only told what to do

Integration test

  • A worker will be an employee if his work is fully integrated into the business, if a person’s work is only an accessory to the business, then they are not an employee

Economic reality test

The court said 3 factors must exist before a worker can be classified as an employee:

  1. The employee agrees to provide work or skill in return for a wage

  2. The employee accepts that the work will be subject to the control of the employer

  3. All other considerations in the contract are consistent with there being a contract of employment, rather than any other relationship

“Akin to employment” test for non-traditional employment relationships

  • Courts have more recently held that people can be vicariously liable for someone who is not technically their employee, provided that the relationship between them is sufficiently akin to employment

Stage two

The wrongful act must be so closely connected with the acts that the tortfeasor was allowed to do so it can be fairly and properly be regarded as done by the tortfeasor while acting in the course of employment or quasi-employment

Employee acting negligently

  • If an employee does their job negligently, the employer can be vicariously liable

Acting against orders

  • If an employee is doing their job, but acts against orders in the way they do it, the employer can still be liable if those actions further the employees business

Employee acting on a “frolic” of their own

  • If employee causes injury or damage to another while doing something which has nothing to do with their employment, or at a time or place outside of work, an employer will usually not be liable

Criminal actions of an employee

  • Offences against a person (e.g battery) are also considered torts of trespass to the person so an employer a can be liable for the crimes of an employee provided there is a close connection between the crime and acts the employee was authorised to do.

Law - vicarious liability key terms

Vicarious liability is a form of liability by which the defendant is liable for a tort committed by a third party

  • The main purpose of VL is to ensure to victim of the tort can receive compensation for the injury or damage suffered

  • In the workplace the employer will usually be in a better financial position to pay than one of their employees

  • The claimant can sue the employee who is still jointly liable with the employer for their actions, but the employer is more likely to have the means to pay for the damages

  • Employer is entitled to recover any compensation paid to C from the employee, e.g through wage deduction

Two stage test to see if one person can be made liable for a tort committed by another:

  1. The relationship between D and the tortfeasor must be of employment or “akin to” (relationship of “employment”)

  2. There must be a close connection between the wrongful conduct and acts the tortfeasor was allowed to do so it can be fairly and properly be regarded as done by the tortfeasor in course of employment (close connection test”)

Stage one

Employee relationship

  • An employer is only liable for torts by employees

  • If the person is injured because of the negligence of an independent contractor, they must sue the independent contractor

Control test

  • One feature of an employment relationship is the ability to control the way a job is done. An employee is told what to do and how to do it, an independent contractor is only told what to do

Integration test

  • A worker will be an employee if his work is fully integrated into the business, if a person’s work is only an accessory to the business, then they are not an employee

Economic reality test

The court said 3 factors must exist before a worker can be classified as an employee:

  1. The employee agrees to provide work or skill in return for a wage

  2. The employee accepts that the work will be subject to the control of the employer

  3. All other considerations in the contract are consistent with there being a contract of employment, rather than any other relationship

“Akin to employment” test for non-traditional employment relationships

  • Courts have more recently held that people can be vicariously liable for someone who is not technically their employee, provided that the relationship between them is sufficiently akin to employment

Stage two

The wrongful act must be so closely connected with the acts that the tortfeasor was allowed to do so it can be fairly and properly be regarded as done by the tortfeasor while acting in the course of employment or quasi-employment

Employee acting negligently

  • If an employee does their job negligently, the employer can be vicariously liable

Acting against orders

  • If an employee is doing their job, but acts against orders in the way they do it, the employer can still be liable if those actions further the employees business

Employee acting on a “frolic” of their own

  • If employee causes injury or damage to another while doing something which has nothing to do with their employment, or at a time or place outside of work, an employer will usually not be liable

Criminal actions of an employee

  • Offences against a person (e.g battery) are also considered torts of trespass to the person so an employer a can be liable for the crimes of an employee provided there is a close connection between the crime and acts the employee was authorised to do.