Define: Loaned Servant

Loaned Servant
Loaned Servant
Quick Summary of Loaned Servant

A loaned servant, also referred to as a borrowed employee or special employee, is an individual who temporarily agrees to work for another employer. While the borrowing employer has control over the employee’s tasks, the original employer remains accountable for the employee’s conduct.

Full Definition Of Loaned Servant

A loaned servant is an employee who is temporarily lent to another employer with the employee’s consent. The borrowing employer takes control of the employee’s work during this time, also known as a borrowed employee or special employee. For example, if a construction company lends one of its workers to another construction company for a specific project, the worker becomes a loaned servant of the borrowing company for the duration of the project. Under the doctrine of respondeat superior, the borrowing employer is vicariously liable for the employee’s actions during this period. However, the employer may also be able to claim immunity under workers’ compensation laws. In summary, a loaned servant is an employee who temporarily works for another employer with the original employer’s consent.

Loaned Servant FAQ'S

A loaned servant refers to a situation where an employee is temporarily loaned or borrowed by another employer to perform work under their direction and control.

The concept of loaned servant can impact liability because it determines who is responsible for the actions and behavior of the employee during the loaned period. The borrowing employer may become liable for the actions of the loaned servant.

Factors such as who has the right to control and direct the employee’s work, who provides the tools and equipment, who pays the employee’s wages, and the duration of the loaned period are considered in determining if someone is a loaned servant.

In most cases, a loaned servant cannot sue the borrowing employer for workplace injuries. Instead, they would typically be covered by workers’ compensation insurance provided by their original employer.

Yes, a loaned servant can be held liable for their actions while working for the borrowing employer. They are responsible for their own negligence or misconduct.

In general, a loaned servant cannot refuse to work for the borrowing employer unless there are specific contractual provisions or legal protections in place that allow them to do so.

The borrowing employer generally does not have the authority to terminate a loaned servant. The original employer retains the right to hire, fire, and discipline the employee.

In most cases, a loaned servant is not entitled to receive benefits from the borrowing employer. They typically continue to receive benefits from their original employer.

A loaned servant cannot enter into a separate employment contract with the borrowing employer. Their employment relationship remains with their original employer.

No, a loaned servant cannot be considered an independent contractor. They are still an employee of their original employer, even while working for the borrowing employer.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 16th April 2024.

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