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The News of the Whirled is worried they may be liable for any successful claim in defamation against Agatha Runcible. News of the Whirled believes
The News of the Whirled is worried they may be liable for any successful claim in defamation against Agatha Runcible. News of the Whirled believes their contract with Agatha is one of principal and independent contractor, not employee, however, they are concerned so seek further advice. The contract contains the following provisions:
- Agatha is engaged as a Freelance Contributor with duties and responsibilities allocated by News of the Whirled.
- The contract commences on 1 August 2022 and will end on 1 August 2023 or on either party providing one month's written notice (whichever is earlier).
- Agatha may take on other work during the term of service, provided there's no conflict with News of the Whidden's duties and responsibilities.
- Agatha receives $75,000 for the contract term, paid in monthly instalments, and is responsible for any required superannuation contributions.
- Agatha indemnifies News of the Whirled against liability for any loss, damage, or liability to third parties during the term of employment. Agatha will take out any necessary insurances and use her own equipment for the services provided.
- Agatha agrees not to compete with News of the Whirled during the contract and for six months after its termination. Further, when Agatha compiled the article, she was a little intoxicated having attended a work party at lunchtime where alcohol was served. News of the Whirled argue that their procedures prohibit their journalists from working while under the influence of alcohol. In addition, News of the Whirled argue that following their procedures Agatha should have first cleared the article with their in-house legal team, which she did not do
(a) Advise News of the Whirled whether for the purposes of vicarious liability_ Agatha is an employee or independent contractor?
(b) Assuming for the purposes of this question only that Agatha is an employee. and not an independent contractor, are the other elements of vicarious liability that are needed to hold News of the Whirled liable for Agatha's action. established?
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