The building and construction industry is one of the largest employers of subcontractors in Australia. It is crucial for businesses to understand their obligations in terms of workers compensation insurance when employing subcontractors and other non-employee workers.
In the event of a workplace injury, employers need to provide workers compensation coverage for direct workers and other employees ‘deemed workers’ under the legislation, but not for contractors and sub-contractors who are required to have their own Policy or for labour-hire workers.
What are the responsibilities of business as principal contractors?
- Provide workers compensation for injured workers (whether they are direct employees or sub-contractors deemed workers
- Classify subcontractors in the correct industry
- Properly declare wages paid to subcontractors
- Ensuring the work environment, and any activities undertaken, are safe.
- Ensuring plant equipment, materials and substances are handled safely.
- Verifying that all workers have the required skills, experience and licenses to perform their jobs.
- Introducing workers to safety representatives and OH&S persons.
- Providing adequate supervision for all activities.
ABILITY GROUP specialises in assisting minimise risks, costs & impacts associated with workers compensation.
Need help with better understanding subcontractor management? Contact our friendly team if you have any queries or would like to discuss our subcontractor management and compliance services.
For further information, please refer to:
Source: iCare
Title: Workers compensation for contractors and other non-employee workers in the construction industry
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