New laws will come into effect on 1 January 2012 which will for the first time standardise occupational health and safety (OH&S) legislation around the country. The aim is to ensure that there is an equal standard across Australia, rather than state by state legislation which has made the OH&S system complex. Standardising the laws between states is particularly beneficial for businesses running operations in more than one state.

Business owners should be aware that the new law means revised health and safety obligations for businesses around the country and in this article we look at what’s changed and what you need to do to make sure your business complies.

John Barnes, National Manager for Marsh's Workforce Strategies, says unlike many other regulatory frameworks, there is no special carve out for small and medium sized businesses under the new national Work Health and Safety Act. “Compliance with the new regime is expected, no matter what the size of the business,” he advises.

Who’s responsible?

Under the new national Work Health and Safety Act, the person who is primarily responsible for complying with the new law is defined as the Person Conducting a Business or Undertaking (PCBU). This person could be an employer, a corporation, an association, a partnership, a sole trader or a volunteer organisation.

“The laws mean the PCBU must take all reasonable and practical steps to eliminate any risk of injury to workers,” says Mr Barnes.

Under the law, officers of the business also have a responsibility to comply, with an officer being defined as anyone who participates in making decisions that affect a substantial part of the business. This could include the directors of the business, the CEO or management team or managing partners in a partnership.

Changed definitions

A key change under the new act is a new definition of who constitutes a worker. Mr Barnes advises that the definition covers salaried employees, labour hire staff, apprentices, people on work experience, contractors and sub contractors.

“Workers come in different shapes and sizes and it’s up to the PCBU to ensure workers understand their OH&S obligations,” he says, explaining that this might include having processes to ensure that those unfamiliar with your work environment stick to safe work practices and complying with evacuation drills. The PCBU also has to ensure that they provide a safe place to work and that workers are trained to comply with safety requirements.

“The PCBU also has the same responsibilities to workers as they do to visitors, which means putting in place processes to ensure visitors obey safety rules,” says Mr Barnes.

Feedback loop

Another requirement of the new laws is to ensure there are clear consultation mechanisms in place so that the business understands its health and safety risks and that staff have an avenue for communicating any safety concerns.

“The PCBU must also consult with workers and establish a health and safety committee within two months of it being requested by a designated work group,” Mr Barnes advises.

The PCBU must also be able to demonstrate due diligence in complying with the new laws. “There is a range of things they will need to be able to demonstrate. They must be up to date on health and safety matters, show an understanding of OH&S risks and make sure they have allocated resources to be able to diminish those risks,” he says.

Demonstrating due diligence under the new laws relies on establishing high-level systems and processes.  “There must also be processes such as a formal committee to ensure incidents are responded to, as well as positive performance indicators to verify the OH&S system is working such as an auditing process.”

According to Mr Barnes, for a PCBU, compliance is all about “being competently confident they can clearly articulate the health and safety system, so if someone asks them to describe the auditing, training and consultation processes they can.”

“It’s essential that businesses can show they understand the definition of a worker and the need for proactive health and safety management and effective consultation mechanisms.”

According to Mr Barnes, more than ever before businesses must ensure that the lines of communication and effective safety management are clear from the frontline right up to the Managing Director.  

Marsh has developed an online survey that can help determine your current level of compliance against the requirements of the model Work Health and Safety Act and Regulations. Please click here and follow the prompts to access the survey.


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The information contained in this publication provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Statements concerning legal matters should be understood to be general observations based solely on our experience as insurance brokers and risk consultants and should not be relied upon as legal advice, which we are not authorized to provide. All such matters should be reviewed with  your own qualified legal advisors. CATS 11/0151

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