In force2020 Revised Edition

Contents

Work Injury Compensation Act 2019 · 2020 Revised Edition · Part 2 · Compensation for Work Injury

13. Liability of principal

(1)

Where any person (called in this section the principal) contracts, in the course of or for the purpose of the principal’s trade or business, with any other person (called in this section the contractor) —

(a)

for the execution by the contractor of the whole or any part of any work; or (b)for the supply of labour to carry out any work, undertaken by the principal, the Commissioner may direct the principal to fulfil the obligations of the employer under this Act in relation to any employee of the contractor employed in the execution of the work, subject to any modification that may be prescribed for the application of any provision of this Act to the principal.

(2)

Where the Commissioner makes a direction against the principal under subsection (1), the principal is liable to pay the employee any compensation payable under this Act as if that employee had been immediately employed by the principal, except that the amount of compensation is to be calculated with reference to the earnings of the employee under the contractor.

(3)

Where the principal pays compensation under this section, the principal is entitled to be indemnified by the employer who would have been liable to pay compensation under this Act to the employee independently of this section.

(4)

The Commissioner’s direction under this section against a principal does not bar subsequent proceedings under this Act against the employee’s employer to recover so much of the compensation as may remain unpaid.

(5)

This section applies only if the accident occurs at a place —

(a)

where the principal has undertaken to execute work; or (b)that is under the principal’s control or management.

Terms defined in this Act

Commissioner
Defined · s 2
“Commissioner” means the Commissioner for Labour appointed under section 3 of the Employment Act 1968;
Open s 2
earnings
Defined · s 2
“earnings” means all remuneration payable to an employee in respect of work done under the employee’s contract of service, and includes —(a)privileges or benefits capable of being estimated in money and productivity incentive payments;(b)the value of any food or quarters supplied to the employee by the employer, if as a result of the accident the employee is deprived of such food or quarters; and(c)overtime payments or other special remuneration for work done, whether by way of bonus, allowance or otherwise, if of constant character or for work habitually performed, but does not include the following amounts:(d)travelling allowances;(e)payments for any travelling concessions;(f)contributions paid by the employer towards any pension or provident fund for the employee;(g)payments to the employee to cover any special expenses incurred by the employee by reason of the nature of the employee’s employment;
Open s 2
employee
Defined · s 3
“employee” means an individual who has entered into or works under a contract of service with an employer and —(a)includes every employee of the Government in a class or description declared by the President to be employees for the purposes of this Act; but(b)does not include any class of individuals specified in the Third Schedule;
Open s 3
employer
Defined · s 3
“employer” means any person (A) who employs an individual (B) under a contract of service and includes —(a)the Government, if B belongs to a class or description of employees of the Government declared to be employees for the purposes of this Act under paragraph (a) of the definition of “employee”;(b)the legal personal representative of A, if A is deceased;(c)a duly authorised agent or manager of A;(d)the person who owns or is carrying on, or for the time being is responsible for the management of, the profession, business, trade or work in which B is engaged; and(e)where B is employed for the purpose of any game or recreation and engaged or paid through a club, the manager or members of the managing committee of that club.
Open s 3