Case Study - EMPLOYMENT LAW ASSESSMENT 3 - MGL1201

Lucy owns "Lucy's Luxury Tours" a business located in Geelong. She provides international tourists with Bus Tours throughout Australia. In this business, she employs 15 staff. She has both employees and independent contractors working as her drivers. Finn is one of Lucy's drivers. One day when Finn was driving one of the "Lucy's Luxury Tours" he travelled through a red light as he was speeding along Bourke St, Melbourne distracted by his mobile phone. He collided with a taxi in front of him. As a result, Jack, the driver and owner of the taxi suffered injuries to his head, hands & legs; and suffered huge damages to his car. His losses were considerable. As Jack was being driven away from the scene of the accident- Jack observed a sign, on the rear of the Bus bearing the words "Lucy's Luxury Tours". Though Finn is the Bus Driver who collided with him in Melbourne - Jack has found out that, Lucy is the owner of "Lucy's Luxury Tours" in Geelong. Therefore, Jack is now seeking to recover damages from Lucy for his losses. The damages he is seeking from Lucy are as follows- a. $14,000 for 'Medical Costs'; and b. $10,000 for 'Vehicle Repair Expenses'; and c. $10,000 for 'Loss of Income'; and d. $10,000 for 'Loss of Deposit on a Cruise Ship Booking' that he lost when he was forced to cancel the booking. Jack has sent a letter of demand for the compensation, but Lucy is refusing any liability whatsoever. She claims that, Finn, as driver is operating as an Independent Contractor, not as an Employee, and is therefore directly liable for Jack's damages.