ACTIn ForceAct
Workers Compensation Act 1951
13Liability of principal for uninsured contractor’s injured
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13 Liability of principal for uninsured contractor’s injured
(a) a person carrying on a business (the principal) enters into a
contract with another person (the contractor) to carry out work
that is part of the principal’s business (the contracted work); and
(b) a worker employed by the contractor becomes an injured worker
(the injured worker) while carrying out the contracted work;
and
(c) the contractor is uninsured.
(2) The principal is liable to pay to the injured worker any compensation
that the principal would have been liable to pay if the worker was
employed by the principal.
(3) If this section is relied on to make a claim for compensation, or bring
any other proceeding, against a principal, then, in the application of
this Act to the claim or proceeding—
(a) a reference in this Act to an employer is taken to be a reference
to the principal; but
(b) any calculation of the earnings of the injured worker must be
based on the earnings paid or payable to the worker by the
contractor that employed the worker.
(4) If a principal is liable under this section to pay compensation to an
injured worker, the principal is entitled to be indemnified by—
(a) if the principal is uninsured within the meaning of paragraph (a)
of the definition of uninsured—any person, other than the DI
fund manager, who would have been liable to pay compensation
to the worker independently of this section; or
(b) if the principal is uninsured within the meaning of paragraph (b)
of the definition of uninsured—any person, including the DI
fund manager, who would have been liable to pay compensation
to the worker independently of this section.
(5) Nothing in this section prevents a worker claiming compensation—
(a) against a contractor instead of a principal; or
(b) if both the contractor and principal are uninsured—against the
DI fund.
uninsured, in relation to a principal or a contractor, means the
principal or contractor—
(a) does not have a compulsory insurance policy in force that
applies to an injured worker mentioned in subsection (1) in
relation to an injury; or
(b) has a compulsory insurance policy in force that applies to the
injured worker in relation to the injury but the policy was issued
by a licensed insurer that—
(ii) has been wound up.