Sub-contractor (labour only)
There are two types of sub-contractor. ‘Labour only sub-contractor’ and ‘bona fide sub-contractor’. The latter type of sub-contractor is defined within this Glossary under ‘Bona fide sub-contractor’.
A ‘Labour only sub-contractor’ provides, as their name suggests, only labour and are paid a fixed hourly or weekly rate. They are considered employees of the contractor and as such, any injury they incur or cause during the course of their employment will be the responsibility of their employer. Liability will also be passed onto the employer should any damage to property be caused. It is vital that each employer therefore correctly advises their insurer of all the people who are under their employment so as to ensure they purchase the correct policy.