(1) This Regulation applies in respect of a contracting chain operating in one or more of the activities mentioned in Schedule 2.

(2) Subject to Regulation 8, where the employer of a posted worker is a direct subcontractor of a contractor and the posted worker has not received net remuneration due to him or her for work under the contractual relationship between the contractor and the posted worker’s employer, the posted worker’s employer and that contractor are jointly and severally liable for the amount of net remuneration outstanding.