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Vicarious Liability

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Seminar 7

Vicarious Liability

The problem question deals mainly with the issue of Vicarious Liability and Negligence. In order to advise Jerry one would have to explore the rules of vicarious liability, relevant statute law and case law which may apply.

Vicarious liability has been defined as the person who commits a wrong must be an employee and not an independent contractor, the employee must have committed a tort and the tort must have been in the course of employment.

The doctrine of ‘vicarious liability’ is a public policy that holds employers liable when a tort is committed by an employee in the course of their employment. This means that a victim of a tort can claim compensation from the employee’s company if it is proven to …show more content…

If however, the person is paid a lump sum and has to make their own reduction, they are more likely to be seen as an independent contractor. In this case it was held that the driver was an independent contractor.

However in the case of Market Investigations Ltd v Minister of Social Security
[1969] 2QB173 Cooke J’s judgment was that “The fundamental test to be applied is this: ”Is the person who has engaged himself to perform these services performing them as a person in business on his own account?” This was been determined by using a mix of factors: for example, does the employee provide his own equipment and does he hires his own helpers? It also looks at what degree of financial risk he takes and to what degree of responsibility he has. It also takes into account how the employee is paid and whether the employee can work for another. In this case it was held that Mrs Irving was employed under a series of contracts of service and therefore was an employee of the company.

Although, Jerry regards Peter as self-employed within his organisation, it would be fair to state that given the control test above, Jerry does have control over Peter by stating that if ever Peter is not available when he wants him he will never employ him again. Peter is free to work for others but does not do so. Therefore the case of Yewens v. Noakes (1880) 6 QBD demonstrates the control that

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