38AProhibition on unauthorised subcontracting

#### 38A Prohibition on unauthorised subcontracting 38A Prohibition on unauthorised subcontracting > > (1) A master licensee (the principal) who enters into a contract to provide persons to carry on any relevant security activity with a person (the client) must not engage another master licensee (the subcontractor) to provide those persons on behalf of the principal unless— > > > > > (a) the client has expressly agreed in writing with the principal to the provision of the persons by a subcontractor, and > > > > > (b) the principal provides a written notice of the requisite subcontracting particulars in relation to any subcontractor engaged by the principal to the client before requiring payment by the client for the work of such a subcontractor. > > > > Maximum penalty— > > > > > (a) for a corporation—500 penalty units, or > > > > > (b) for an individual—250 penalty units or imprisonment for 6 months, or both. > > > (2) A subcontractor providing persons on behalf of the principal must not engage another master licensee (further subcontractor) to provide any of the persons to carry on security activities that the principal has engaged the subcontractor to provide unless— > > > > > (a) the principal has expressly agreed in writing with the subcontractor to the provision of the persons by a further subcontractor, and > > > > > (b) the subcontractor provides a written notice of the requisite subcontracting particulars in relation to any further subcontractor engaged by the subcontractor to the principal before requiring payment by the principal for the work of the further subcontractor. > > > > Maximum penalty— > > > > > (a) in the case of a corporation—200 penalty units, or > > > > > (b) in the case of an individual—100 penalty units or imprisonment for 6 months, or both. > > > (3) The regulations may exempt any principal or class of principals or relevant security activity from the operation of subsection (1) (b) in such circumstances as may be specified in the regulations. > > > (4) In this section— > > > > relevant security activity does not include the provision of a restricted security keying system. > > > > requisite subcontracting particulars, in relation to a subcontractor or further subcontractor, means— > > > > > (a) the name and master licence number of the subcontractor or further subcontractor, and > > > > > (b) any other particulars prescribed by the regulations. > > **s 38A:** Ins 2012 No 49, Sch 1 \[68\]. Am 2022 No 52, Sch 1\[38\]–\[42\].