Is it fair that employers should be held liable for the negligence of their employers?

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Anisimov Dmitry, A

Is it fair that employers should be held liable for the negligence of their employers?

When an employee commits a tort during the course of the employment, an employer might be held liable for his negligence. This is called the doctrine of vicarious liability, which generally operates in the law of torts. The issue of the employers’ liability is debating, because it is a very specific area of law as a person is liable for the torts of another without express authorization. If a master employed a negligent worker, he should pay for his wrongdoings. Firstly, this essay will give an overview of the topic, then will discuss is it fair or not, by analyzing different situations. Finally, all main points will be summarized and the answer will be given.  

There are several reasons why the doctrine of vicarious liability is convenient. Firstly, employers are mostly wealthier than their employees and usually are insured to protect themselves from such risks and, therefore, they are better able to pay damages. Secondly, there is a concept that employers benefit from employees and, hence, should bear losses resulted by their actions. Thirdly, employers have a chance to choose employees and if they chose a careless one, they should pay damages caused by servant’s carelessness. Lord Millett in Dubai Aluminium Co Ltd v Salaam [2003] 2 AC 366 concluded, “The master ought to be liable for all those torts which can fairly be regarded as reasonably incidental risks to the type of business he carries on.”[1]

For vicarious liability it is important to determine the status of a person who committed a tort, whether he was an employee or an independent contractor. Masters will only be liable for the torts of their servant, but for their individual contractors they are usually not liable. In Hewitt v Bonvin [1940] 1 KB 188 a definition to employee was given as “any person employed by another to do work for him on the terms that he is to be subject to the control and direction of his employer in respect of the manner in which the work is to be done.” There are also some features, which show the existence of contract of service, this means having relations between a master and a servant. For example, the power to select or appoint, payment of wages and salary, delegation, obligation to work, hours of work and holidays.[2] 

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Another important aspect of vicarious liability is whether employee acted in a course of employment or not. The employee should commit wrong authorized by the employer. On the other side, the master will avoid liability if he manage to prove that the servant acted on his own, unconnected to his employment.[3] A typical example is Mattis v Pollock (t/a Flamingo’s Nightclub), The Times, 16 July 2003. In this case the owner of the nightclub was held liable for the doorman’s attack to the claimant, because Court of Appeal found that the doorman was known to the defendant to be violent ...

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