www.kellyco.com.au | workplace health & safety: it’s personal disability information &...
TRANSCRIPT
www.kellyco.com.au | www.kellyco.com.au
Workplace Health & Safety: It’s Personal
Disability Information & Resource Centre
Clare Raimondo, Partner4 April 2013
Kelly & Co.
www.kellyco.com.au | Page 2
Overview
Duties of volunteer Board members & managers on safety matters
Penalties for non-compliance
What it means in practical terms
Case study
www.kellyco.com.au | Page 3
Duties of Volunteer Board Members & Managers
Workplace health & safety laws impose personal liability
Duties apply to “officers”: company directors & secretaries decision-makers people who influence a business' financial standing people whose instructions affect Directors’ decisions
The duty is to exercise “due diligence” in safety matters
www.kellyco.com.au | Page 4
Due Diligence Duty of Officers
Due Diligence
Verify
Comply
Monitor
Know
Understand
Resource
www.kellyco.com.au | Page 5
The Due Diligence Duty of Officers
Obtain knowledge about work health & safety matters Understand business operations & the associated hazards
and risks Resource health & safety appropriately Monitor trends in safety performance Implement compliance processes Verify compliance
www.kellyco.com.au |
Primary Penalties
PCBU Officer Worker
Category IIntentional or reckless indifference to potential for death or serious harm
$3 million $600,000
5 years gaol
$300,000
5 years gaol
Category IIFailure to comply with safety duty with risk of death, serious injury or illness
$1.5 million $300,000 $150,000
Category IIIFailure to comply with safety duty
$500,000 $100,000 $50,000
Criminal penalties are uninsurable
www.kellyco.com.au | Page 7
What it Means in Practical Terms
Chairman
Ensure Board members receive training in safety matters
Ensure the Board receives regular safety reports
Ensure operational sites are visited regularly
www.kellyco.com.au | Page 8
What it Means in Practical Terms
Board Members
Show leadership on safety matters Be inquisitive about safety information & resourcing
decisions Examine audit compliance results carefully Ask the right questions Get to know your key safety personnel Hold management accountable for safety performance
www.kellyco.com.au | Page 9
What it Means in Practical Terms
Secretary
Ensure safety reports & compliance audits are provided to the Board
Ensure resourcing decisions have a safety impact assessment
Arrange meetings & training for Board members
Keep records of Board decisions
www.kellyco.com.au | Page 10
What it Means in Practical Terms
Managers Show leadership on safety matters Attend & participate in safety training Carefully scrutinise safety information & resourcing
decisions Verify that the correct information is being provided to the
Board Be on the lookout for relevant developments in health &
safety matters Oversee the delivery of legal compliance measures
www.kellyco.com.au | Page 11
Case Study: The Facts
Employer operated a hotel business
?Child accessed semi-enclosed area to retrieve a tennis ball
Pipe collapsed, child was electrocuted and died
Employer and its Directors were prosecuted
Inspector Aldred v Herbert & Ors [2007] NSWIRComm 170
www.kellyco.com.au | Page 12
Case Study: The Outcome
Not acceptable for Directors to adopt a passive role on safety matters
Reliance on competent & experienced management is not sufficient
Directors must personally and proactively take steps to verify compliance with safety obligations
Employer fined $150,000 & each Director $12,000
www.kellyco.com.au | Page 13
Kelly & Co. Lawyers
Level 21, Westpac House
91 King William Street
Adelaide SA 5000
T: +61 8 8205 0800
F: +61 8 8205 0805
www.kellyco.com.au