Now, contractors are liable for the wages of their subcontractor’s employees in the construction industry. What to be careful about?


At the end of 2023, another amendment to the Labor Code was adopted without media attention; according to this, the contractor is now liable for the wages of its subcontractor’s employees to the extent that the employees participated in contractual performance for this contractor. If the subcontractor does not pay the employee’s salary, the employee can appeal to the contractor for its payment after the lapse of 3 months. Liability covers up to the minimum wage.

A contractor is considered to be a person with a trade license to carry out constructions, who provides the given construction work through a subcontractor. An employment agency that has temporarily assigned its employees to the contractor is also considered to be a subcontractor. From the point of view of contractors, it is advisable to set up the contractual relationship correctly so that their liability under the terms of law is possibly excluded, or at least limited. On the part of subcontractors, it is particularly important not to neglect the fulfillment of the obligation to disclose information; failure to comply with it is considered an offence.