(4 D 1988 Ed.] Employees' Compensation [CAP. 282 39
an employee employed by a sub-contractor, shall have a right of action against the third party for the recovery of any sum which he is obliged to pay as a result of the accident, whether by way of compensation or indemnity or by virtue of any agreement made with the employee prior to the accident, and may exercise such right either by joining in an action begun by the employee against the third party or by instituting separate proceedings:
Provided that the amount recoverable under this paragraph shall not exceed the amount of damages, if any, which in the opinion of the court would have been awarded to the employee but for the provisions of this Ordinance.
(2) An employee shall, before instituting proceedings for damages under subsection (1), in writing notify the employer of his intention to do so and shall likewise notify the employer if he decides to abandon such proceedings or to relinquish or settle his claim for damages, and shall in connection with any such notification furnish such particulars as the employer may require.
(3) If an employee who has—
(a) failed to notify the employer of his intention to institute proceedings under subsection (1); or
(b) in connection with any such notification, failed to furnish such particulars as the employer may require,
recovers damages against a third party in any such proceedings, then—
(i) where the amount of damages recovered is equal to or greater than the amount of compensation which would, but for this subsection, be payable, no compensation shall be payable; or
(ii) where the amount of damages recovered is less than the amount of compensation which would, but for this subsection, be payable, the amount of compensation payable shall be a sum equal to the difference between the amount of damages recovered and the amount of compensation which would, but for this subsection, be payable.
(4) In any proceedings to which subsection (3) applies the court may, where any sum of compensation referred to in that subsection has already been paid, make such order with respect to the repayment of such sum or any part thereof as is necessary to give effect to that subsection.
(5) Notwithstanding anything to the contrary in any other enactment, where written notice of intention to institute proceedings under subsection (1)(b) has been given by an employer, or by any person who may be called upon to pay an indemnity under section 24, to a third party within 12 months of the receipt by the employer or such person of due notice of the accident concerned, no such proceedings shall lapse, or be barred, under any enactment relating to the limitation of actions, until after the expiry of a period of 3 months from the date upon which a claim for compensation in respect of such accident has been—
(a) determined by certificate under section 16A; or
(b) settled by agreement under section 17; or
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