8. Are princIpal contractors in building and construction works liable to pay wages of subcontractors' employees?
The principal contractors, superior sub-contractors and superior nominated sub-contractors engaged in building and construction works are liable for the first two months' unpaid wages of an employee who is employed by the sub-contractor or nominated sub-contractor.
If employees employed by a sub-contractor or nominated sub-contractor are owed wages, they must serve a written notice to the principal contractor or the main nominated sub-contractor within 60 days (or an additional period of 90 days permitted by the Labour Department) after the wages become due. The employees should state the following in the notice:
- the names and addresses of the employees;
- the name and address of their employer;
- the address of the place of employment of the employees;
- the particulars of the work in respect of which the wages are due; and
- the amount of wages due and the period to which they relate.
The principal contractor, the superior sub-contractors and the superior nominated sub-contractors should pay wages to the employees within 30 days after receiving the notice. They may request every superior sub-contractor or superior nominated sub-contractor to the employees’ employer to share out the liability.
The wages are paid on behalf of the employee’s subcontractor employer. The wages paid by the principal contractor, the superior sub-contractors and the superior nominated sub-contractors shall be a debt due by the employer of the employees to them. The debt may be recovered through separate civil proceedings.
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