i could be wrong - but was told working on a premisus (be it a contractor or cater) you can claim work over. i went though stuff at work - while there as an apprentice and the boss i had told me i wasnt covered. maybe check workcover dot com dot au? or google it
Generally, if they have been engaged to do work (no need for a WPA), and they don't have their own insurances there is some possibility for them to pursue a claim against the contractor or principal contractor.
I am pretty sure they can as you are the initial owner and you sub contract therefore you still have ownership over the project.
It also comes down to how the subcontractor informs their staff of safety and also if you checked if they were doing things safetly. Just because someone was injured it soesn't always mean a payout.
I have just been to a OH&S training day and my head is still spinning. There are alot of laws about to be introduced or changed, but no concrete date has been set for the changeover.
Give VECCI a call and they should be able to give you the correct answers
as far as i know each sub-contractor has to have their own insurance (i know with our company we wont hire unless they have all their relevant insurances, and i am pretty sure we could get fined for using them). If the sub-contractor has their own employees then they have to have work cover for them, but ultimately the main contractor isnt responsible for the work cover of a sub-contractor, thats why the sub-contract and arent an employee.
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