175BLiability of principal contractor for unpaid premiums payable by subcontractor

175B Liability of principal contractor for unpaid premiums payable by subcontractor

175B Liability of principal contractor for unpaid premiums payable by subcontractor

(1) This section applies where—

(a) a person (the principal contractor) has entered into a contract for the carrying out of work by another person (the subcontractor), and

(b) employees of that subcontractor are engaged in carrying out the work (the relevant employees), and

(c) the work is carried out in connection with a business undertaking of the principal contractor and is work that is an aspect of the work of that business undertaking.

(2) The principal contractor is liable for the payment of any workers compensation insurance premiums payable by the subcontractor in respect of the work done in connection with the contract during any period of the contract unless the principal contractor has a written statement given by the subcontractor under this section for that period of the contract.

(3) In this section—

workers compensation insurance premiums means—

(a) if the subcontractor has failed to obtain or maintain in force a policy of insurance as required by section 155 (1) in respect of the work done in connection with the contract during any period of the contract—the amount recoverable under section 156 (1) (Recovery of double premiums from employer not obtaining policy of insurance) in connection with that failure, or

(b) if an amount is due and payable by the subcontractor to an insurer as a premium or balance of premium for the issue or renewal of a policy of insurance in respect of the work done in connection with the contract during any period of the contract—that amount, together with any late payment fee payable in respect of that amount under section 175 (2).

(4) The written statement is a statement comprising the following—

(a) a statement by the subcontractor that all workers compensation insurance premiums payable by the subcontractor in respect of the work done in connection with the contract during any period of the contract have been paid, accompanied by a copy of any relevant certificate of currency in respect of that insurance,

(b) a statement by the subcontractor as to whether the subcontractor is also a principal contractor in connection with that work,