Labour only Contractors and Sub Contractors
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Labour-Only Contractors and Sub-Contractors
Part One - Labour-only contractors and sub-contractors
Under the Social Security Legislation all workers only supplying their labour in the construction and building industry are classified as employed persons.
Part Two - Registration cards and contribution schedules
Workers only supplying their labour should get a Social Security registration card. They must give this card to the employer. The employer must keep the card until the employment ends.
Each employer should make sure that they:
- have a registration card for every employee;
- make the correct deductions from the employee’s wages;
- keep a record of the wages paid and deductions made;
- enter all the relevant details on the contribution schedule each quarter;
- provide a contract of employment for each employee, and;
- provide each employee with an itemised payslip each time that wages are paid.
For further advice on the requirement to supply contracts of employment and payslips, please refer to the Jersey Arbitration and Concilliation Service (JACS).
It is the employer’s responsibility to return to us both the employee’s (primary) contribution and the employer’s (secondary) contribution. The employer has the right to deduct the employee’s (primary) contribution from the particular payment on which that contribution is calculated.
For further details please refer to Employers Guide SSD1.
Part Three - Who is the employer?
The employer is the person or company who contracts the person supplying only their labour to do the work.
Labour-only employees/subcontractors can also be employers if they:
- take on their own labour-only employees/ sub-contractors; and
- are paid for all the work they and their sub-contractors do.
This means that where a person acts as a speaker, negotiator or paymaster for 2 or more persons working together, that person is treated as an employer.
A limited company is considered to be an employer if it:
- supplies a labour-only employee/ sub-contractor; and
- payment for services is made to that company.
Part Four - Sub-contractors
When is a Sub-contractor said to be ‘self-employed’?
Sub-contractors are treated as selfemployed persons when:
- they provide labour and materials
N.B. Materials supplied must be sufficient for the size and nature of the job.
or
- they act as a speaker, negotiator or paymaster (see part 3)
When is a Sub-contractor said to be ‘employed’?
Where only small amounts of materials are supplied, the person is treated as a labour-only subcontractor and as such is said to be an employed person. An example of this situation would be; a carpenter supplying a few tools, nails or screws. This decision is unaffected by the fact that the labour-only sub-contractor may hold a valid ITIS exemption card.
The sub-contractor must give their employer a Social Security registration card for any work performed as a labour-only contractor or sub-contractor.
The above wil need to be re-considered for each new contract.
If you are in any doubt concerning the above regulations, please contact the Compliance Section at the Social Security Department who will be happy to assist.
Part Five - Work in the home
A private householder who hires a company or an individual to carry out work on his own residence is not the employer.
Part Six -Further Information
This leaflet gives general information and does not try to give full details on any particular matter. It cannot be treated as a statement of the Law.
Please contact us if you have any questions or suggestions about the information contained in this leaflet.
Our staff are here to help you, please telephone us on 445505 or call into our office.
If you become unemployed you may wish to visit our website www.jobsinjersey.gov.je and search for current vacancies online.
Please note: calls to the Department may be monitored for training purposes.
PRIVACY STATEMENT
The Social Security Department collects information for the purpose of dealing with all matters relating to the benefits and services it administers. We may check information about you with other information we have.
We will not give information about you to anyone outside the Department unless the law allows us to or we have your consent.
The Social Security Department is the Data Controller for the purposes of the Data Protection (Jersey) Law 2005.
Large print versions of most of our leaflets are available. Please call us on 445505 and we will be happy to send them to you.
