Not all contractors are covered by workers compensation in Western Australia. However, there are specific circumstances where they may be. Contractors can only claim workers compensation if they sustain a workplace injury and are defined by the Act as a ‘worker’. Generally, contractors and subcontractors are now excluded from the definition of a worker but it depends on the circumstances of your individual working arrangements.
Definition of a Contractor by Law
The Workers Compensation and Injury Management Act 2023 defines a contractor as someone contracted to do specific work for another person. Contractors usually run their own businesses and provide their services to others. This means contractors are hired to complete the work, not employed to do it. The person or business that hires a contractor to do work is referred to as the principal.
Contractor Workers Compensation
A business must provide workers’ compensation cover for any employees who meet the legal definition of a worker. However, contractors may find it difficult to successfully claim workers’ compensation under the new Workers Compensation and Injury Management Act. This is because some insurers will reject claims, arguing that contractors don’t qualify as ‘workers’ under the law.
A principal is only liable for compensation to a contractor worker if:
- The contractor’s work is directly a part or process related to the business’s core operations; and
- The injury happened on property owned or controlled by the business. This includes places where the business contracted for the work to be completed
Subcontractor Workers Compensation
Subcontractors are generally hired by the main contractor to complete a specific part of a larger project. They usually work directly with the contractor rather than the primary client. Subcontractors involved in contracts with more than one company might not be protected under the Act.
If a worker gets injured from relevant employment with a contractor, and the contractor has a contract with a principal, both companies may be considered the worker’s employer. They may both be held responsible for paying any compensation the contractor would owe if they were the sole employer. This means the worker may claim compensation from the contractor, principal, or both.
Unsure If You’re Covered by Workers Compensation?
If you’re unsure whether you are considered a contractor or worker, it’s important to seek legal advice. Anvil Legal can review your case to determine if you might qualify for workers’ compensation benefits as a contractor. If you’ve been injured at work and need help navigating the claims process, our experienced lawyers can assess your case and help you understand your rights. Contact us today to arrange your consultation.
