Hong Kong Ordinances

EMPLOYEES' COMPENSATION ORDINANCE - SECT 24

Liability in case of employees employed by sub-contractors

(Past version on 30/06/1997).

(1) Where any person (in this section referred to as the principal 
contractor), in the course of or for the purposes of his trade or business,
contracts with a sub-contractor for the execution by or under the
sub-contractor of the whole or any part of any work undertaken by the
principal contractor, the principal contractor shall be liable to pay to any
employee employed by that sub-contractor or by any other sub-contractor in the
execution of the work any compensation under this Ordinance which the
principal contractor would have been liable to pay if that employee had been
immediately employed by him; and where compensation is claimed from or
proceedings are taken against the principal contractor, then, in the
application of this Ordinance, references to the principal  contractor shall
be substituted for references to the employer, except that the amount of any
compensation calculated by reference to earnings shall be calculated by
reference to the earnings of the employee under the employer by whom he is
immediately employed.

(1A) Where a principal contractor is liable to pay compensation under this
section, he shall be liable for the offences under sections  6C (15), 6D(10),
6E(16), 10(10), 16A(12) and 16I(6) as if he were an employer. (Added 52 of
2000 s. 13)

(2) Where the principal contractor is liable to pay compensation under this
section, he shall be entitled to be indemnified by any person who would have
been liable to pay compensation to the employee independently of this section.

(3) An employee employed by a sub-contractor may issue a written request to
the sub-contractor to supply to the employee the name and address of the
principal contractor.

(4) A sub-contractor shall within 7 days after the date of issue of a written
request under subsection (3)-

(a) supply to the employee the name and address of the principal  contractor;
and

   (b)  deliver a copy of the written request to the principal  contractor.

(5) A sub-contractor who without reasonable excuse fails to comply with
subsection (4) commits an offence and is liable to a fine at level 5. (Amended
63 of 1992 s. 11; 36 of 1996 s. 18)

(6) An employee shall, before making any claim or application by virtue of
this section against a principal contractor, serve on the principal contractor
a notice in writing stating-

   (a)  the name and address of the employee;

   (b)  the name and address of the sub-contractor by whom he is employed;

   (c)  the address of the place of employment of the employee;

   (d)  the particulars of the accident and the injury suffered; and

   (e)  the amount of compensation to be claimed.

(7) Where a claim or application is made by virtue of this section against a
principal contractor, the principal contractor shall give notice thereof to
the sub-contractor specified in the notice served on the principal contractor
under subsection (6), who shall thereupon be entitled to intervene in any
application made against the principal contractor.

(8) Nothing in this section shall be construed as preventing an employee
recovering compensation under this Ordinance from a subcontractor instead of
the principal contractor. (Replaced 76 of 1982 s. 19)