Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993)Chapter IX : Obligations of employers89. Contractors and sub-contractors |
[Section 89 heading substituted by section 56 of the Compensation for Occupational Injuries and Diseases Amendment Act 10 of 2022, Notice No. 3294, GG48431 dated 17 April 2023]
(1)
| (a) | If a contractor in the course of or for the purposes of his or her business enters into an agreement with a sub-contractor for the execution by the sub-contractor of the whole or any part of any work undertaken by the contractor, the sub-contractor shall, in respect of its employees employed in the execution of the work concerned, register as an employer in accordance with the provisions of this Act and pay the necessary assessments. |
| (b) | If a sub-contractor fails to register or pay any assessment, the said employees of the sub-contractor shall be deemed to be the employees of the contractor, and the contractor shall pay the assessments in respect of those employees. |
| (2) | If a contractor has paid an assessment or compensation for which he or she would not have been liable but for the provisions of subsection (1), such contractor may recover that assessment or compensation from the sub-contractor. |
| (3) | If a contractor has in terms of this section paid an assessment to the Compensation Fund, the contractor may set off the amount so paid against the debt to the sub-contractor. |
| (4) | Notwithstanding the provisions of this section, the Commissioner may recover compensation from the sub-contractor instead of from the contractor, and if the full amount cannot be recovered from the one, the shortfall can be recovered from the other. |
| (5) | A contractor shall not be liable in terms of this section in respect of any accident which happened at a place which is not on or about the premises on which the contractor undertook to execute the work, or which is not otherwise under his control or management. |
[Section 89 substituted by section 56 of the Compensation for Occupational Injuries and Diseases Amendment Act 10 of 2022, Notice No. 3294, GG48431 dated 17 April 2023 - effective 23 January 2026 per (a) of Proclamation Notice 306, GG53990 dated 23 January 2026]