Legislation, Audits & Inspections13 min readPublished 16 August 2026

Section 37(2) Mandatory Contractor Agreements & Liability in South Africa

The comprehensive legal and operational guide to Section 37(2) mandatory agreements under the OHS Act, structuring client-contractor indemnities, and preventing vicarious criminal liability.

Corporate procurement director and principal contractor signing Section 37.2 OHS Act mandatory legal agreementStructuring enforceable Section 37(2) agreements to eliminate vicarious criminal liability.

1. Vicarious Liability: The Legal Presumption of Guilt

Section 37(1) creates a strict statutory presumption that the acts or omissions of any contractor on your premises are deemed to be your company's own offenses, unless a valid Section 37(2) agreement is in place.

Frequently Asked Questions

Does a 37(2) contract eliminate all client duties?

No. The client must still demonstrate reasonable care in pre-qualifying contractors and verifying competency.

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Written by Diba Statutory Legal Defense PracticeVerified by Orlinda Pieterson
Lead OHS Legal CounselLLB, LLM Labour Law

Diba BES is a 100% Black Women-Owned, Level 1 B-BBEE provider delivering occupational health & safety consulting, accredited workplace training, and commercial workplace services across South Africa since 2003.