Section 7: Workmen employed by contractors

7. Workmen employed by contractors (1) (a) Where a person, in this section referred to as “the principal”, in the course of and in connection with his trade or business, contracts with any other person for the execution by or under the contractor of the whole or any part of any work undertaken by the principal, the principal shall, provided the notice of the accident required under section 14 is given to him, be liable to pay to any workman employed in the execution of the work any compensation under this Act which he would have been liable to pay if that workman has been immediately employed by him. (b) Where compensation is claimed from or proceedings are taken against the principal under paragraph (a)— (i) references in this Act to the principal shall be substituted for references to the employer; and (ii) the amount of compensation shall be calculated with reference to the wages of the workman under the employer by whom he was immediately employed. W9 – 5 [Issue 1] Workmen’s Compensation Act (2) Where the principal 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 workman independently of this section. (3) Nothing in this section shall be construed as preventing a workman recovering compensation under this Act from the contractor instead of the principal. (4) This section shall not apply in a case where the accident occurred elsewhere than on, in, or about the premises on which the principal has undertaken to execute the work, or which are otherwise under his control or management.