Labour-only contractors and sub-contractors
Under the Social Security legislation, all workers supplying their labour only in the construction and building industry are classified as employed persons.
Registration cards and contribution schedules
Workers supplying their labour only should be in possession of a registration card. They must show this card to the employer, together with photographic ID.
What employers must do
Each employer should make sure that they:
- for every new employee, hold a copy of their registration card and photographic ID
- make the correct deductions from the employee’s wages
- keep a record of the wages paid and deductions made for 10 years
- enter all the relevant details on the contribution schedule each quarter
- provide a contract of employment for each employee
- 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, see the Jersey Advisory and Conciliation Service (JACS) website.
Jersey Advisory and Conciliation Service (JACS) website
It's the employer’s responsibility to return to us both the employees (primary) contribution and the employer's (secondary) contribution.
The employer has the right to deduct the employees (primary) contribution from the particular payment on which that contribution is calculated.
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 / sub-contractors can also be employers if they:
- take on their own labour-only employees / sub-contractors
- 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 two or more persons working together, that person is treated as an employer.
When is a sub-contractor said to be ‘self-employed’?
Sub-contractors are treated as self-employed when:
- they provide labour and materials (materials supplied must be sufficient for the size and nature of the job)
- they act as a speaker, negotiator or paymaster
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 sub-contractor and is said to be an employed person, eg 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.
Labour only sub-contractors for tax
The sub-contractor must show their employer their registration card, together with photographic ID, for any work performed as a labour-only contractor or sub-contractor.
The above will need to be re-considered for each new contract.
If you're in doubt concerning the above regulations, you can talk to the Contributions and Enforcement team at Customer and Local Services who will be happy to help.
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.
For more information on the introduction of registration cards and how it may affect your business, visit the below pages.
Registration cards (for work and housing)
Businesses, business licences and staff (registration cards)