Vicarious Liability in Employment Law
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Questions and Answers

What is the primary justification for vicarious liability?

  • Moral responsibility for workplace outcomes (correct)
  • Promoting employee autonomy
  • Deterrence through job security
  • Enhancing organizational profits

Which of the following is NOT a stage of establishing vicarious liability?

  • Financial compensation given (correct)
  • Employer-employee relationship established
  • Tort committed
  • Sufficient connection between tort and relationship

In which situation does an employer typically bear vicarious liability?

  • When a personal loss occurs at work
  • A wrongful act done for personal gain during work hours
  • During a lawful company event
  • A wrongful act authorized by the employer (correct)

Which test assesses whether the employer has control over the employee's actions?

<p>Control Test (D)</p> Signup and view all the answers

What is the ‘close connection’ test primarily used for?

<p>To assess liability in intentional torts (B)</p> Signup and view all the answers

Which of the following factors is NOT considered in the Economic Reality Test?

<p>Nature of the employer's financial obligations (D)</p> Signup and view all the answers

Which incident is NOT part of the five incidents established by Lord Phillips in the Christian Brothers case?

<p>Employer's lack of oversight (B)</p> Signup and view all the answers

Which of the following best describes the control test in the context of vicarious liability?

<p>Focuses on how tasks are completed rather than what tasks are assigned (D)</p> Signup and view all the answers

In which scenario is an employee likely to be acting within the course of employment?

<p>Delivering goods to clients while driving. (A)</p> Signup and view all the answers

What is the main goal of compensation in tort law?

<p>To restore the claimant to the position they were in before the harm occurred. (D)</p> Signup and view all the answers

Which of the following is an example of special damages?

<p>Medical expenses incurred before the trial. (C)</p> Signup and view all the answers

When is liability unlikely to attach to an employer regarding an employee's actions?

<p>When the employee takes an unauthorized detour. (C)</p> Signup and view all the answers

Which type of damages cannot be precisely quantified?

<p>Loss of enjoyment of life. (B)</p> Signup and view all the answers

How is future loss of earnings calculated under the multiplier method?

<p>Multiplier × MULTIPLICAND. (A)</p> Signup and view all the answers

In the case of a claimant who is unconscious, which type of claim can still be made?

<p>Claim for financial damages. (D)</p> Signup and view all the answers

Which of the following expenses can an estate claim for a deceased person?

<p>Lost income before death. (D)</p> Signup and view all the answers

Flashcards

Vicarious Liability

A rule that holds an employer responsible for the torts (wrongful acts) committed by their employee, even if the employer wasn't directly involved.

Employer-Employee Relationship

A fundamental requirement for vicarious liability; a connection/relationship where an employer controls or has considerable influence over an employee.

'Course of Employment'

The connection between the employee's actions and their employment duties.

Close Connection Test

Used when employee actions are not directly job-related but still linked to their role; higher standard for employer liability in cases of intentional torts.

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Control Test

A test to establish an employer-employee relationship based on the employer's degree of control over what an employee does.

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Economic Reality Test

A test to determine if an individual is actually an employee rather than an independent contractor; considers work benefits, risks.

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Salmond Test

A test used to assess if an employee's wrongful act was authorized or a wrongful method for an authorized action within the course of employment.

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Justification for Vicarious Liability

It aims to compensate victims, deter wrongful conduct, and ensure fair responsibility.

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Compensation Goal

The aim of compensation is to put the injured party back in the same financial position they would be in had the wrong not occurred.

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General Damages

Damages for losses that are difficult to precisely calculate, such as pain, suffering, and loss of future income.

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Special Damages

Damages for losses that can be specifically measured, like medical bills and lost income before trial.

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Lost Amenity

Loss of the ability to enjoy life's activities, or loss of a faculty (touching, seeing etc), even if unconscious.

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Multiplier Method

A way to calculate future lost earnings by multiplying the annual loss by the number of years loss will continue.

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Employee Deviation

A significant change in work duties that can reduce the employer's liability for the employee's actions.

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Death Claims

In a death case, damages include the deceased's loss of income before death, medical expenses, non-pecuniary losses, and funeral expenses.

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Study Notes

Vicarious Liability

  • Vicarious liability isn't a tort itself; it's a rule holding a defendant responsible for another's tort.
  • Justification: Loss distribution, deterrence through discipline, moral responsibility or fairness.
    • Employers gain benefits (moral enterprise liability) so should bear the consequences.

Employer-Employee Relationship

  • Crucial: Must be an employer-employee relationship or one 'akin to employment.'
  • Tests
    • Control test: Employer's control over what the employee needs to do, not how.
    • Economic reality test: Independent contractor or employee? Factors like purchasing supplies, providing equipment, profit/loss potential (fixed salary) point toward employment.
    • Other factors: Mutuality of obligation, financial risk, relationship length & stability.
  • Christian Brothers 2012 (Lord Phillips): Five incidents indicate employment-related vicarious liability:
    • Means to compensate (e.g., insurance)
    • Activity benefits the employer
    • Tort is part of business activity
    • Tort creates risk (e.g., vulnerability of children)
    • Employer's control (e.g., schools over teachers).
  • Modern approach: The courts now consider all facts, not solely these tests.

Tort Committed in the Course of Employment

  • "Course of employment": Was the tort sufficiently connected to the relationship?
  • Criteria
    • Wrongful act authorized by the employer?
    • Wrongful, unauthorized mode of doing an authorized act?
  • Relevant factors
    • Time & place (working hours/premises)
    • Purpose (benefit employer or personal?)
    • Connection to duties (reasonably linked?)

Close Connection Test (Lister v Hesley Hall)

  • Used when the Salmond test isn't met, especially for intentional torts.
  • This test needs a "strong causative link" between the employment and the tort.
  • It considers the "field of activities" or "functions" entrusted to the employee.

Examples (Course of Employment)

  • Driving for work: Accidents while delivering goods are in the course of employment; personal errands during work are likely not.
  • Acts of violence: Disputes connected to work (e.g., bouncers) may be considered course of employment; unrelated/personal acts are not.
  • Deviations ("Frolics"): Significant unauthorized deviations from duties may not lead to employer liability.

Damages in Vicarious Liability Claims

  • Goal: Put the injured party as close as possible to the position if the tort never happened. (Lim v Camden AHA)
  • Types:
    • General damages: Loss of future earnings, pain & suffering (non-quantifiable).
    • Special damages: Medical expenses, prior loss of earnings (quantifiable).
  • Court Considerations: Fair, just, reasonable consideration.
  • Pain & suffering: No claim for pain while unconscious, but can for financial loss or loss of amenity in various situations.
  • Loss of Amenity: Claimable even for unconsciousness, indicating loss of enjoyment of life. (Lim Poh Choo)
  • Financial damages: Multiplier method: (Years of loss x annual loss = Future loss of earnings)
  • Death case: Estate can claim loss of income, medical expenses, non-pecuniary loss, and funeral expenses.

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Description

This quiz explores the concept of vicarious liability, particularly in the context of employer-employee relationships. It examines the legal principles and tests used to determine liability in such situations, drawing insights from landmark cases and ethical considerations.

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