Director’s Duties – Understanding Workplace Health and Safety Risk is Essential (part 5)

December 14, 2016

If the business you run involves activities that can endanger the health and safety of employees or others this could be the area where you have the biggest risk as a director. Penalties for an offence in relation to WHS include fines and imprisonment.

As a director you need to be aware of the requirements, for both the company and yourself, under WHS legislation. You have a positive obligation to ensure the health and safety of workers while engaged in work for your business. It is not an excuse that you, as a director, are too far removed from the day-to-day operation of the business to ensure safe systems of work; therefore you must ensure systems are implemented and competent people are used for the job.

It is not necessary for a death or injury to have occurred for directors to be prosecuted for a breach of WHS requirements. It is also important to note that WHS obligations relate, not only to employees, but also to any other person carrying out work for the business, for example, contractors, volunteers and work experience students.

A director was recently found liable in relation to the death of an employee operating a machine that malfunctioned. The employee was operating the machine without a number of safeguards which would have prevented the malfunction. It was also found that the employee was not competent to operate or undertake necessary safety audits of the machinery.

If the company, and you as director, have done all things reasonably necessary to provide as safe a workplace as possible based on the nature of the business, you as director will have a greater chance of not being found personally liable.

To reduce your risk of being personally liable as a director for a breach of WHS legislation:

1. ensure the company has documented, and enforced, policies and procedures in relation WHS;
2. identify hazards and risks within the business operation and review this regularly;
3. ensure that there are safety procedures in place and your staff receive regular training;
4. if you notice the policies and procedures are not been followed, raise this with your staff member and remind them of the policy – turning a blind eye will not release you from lability;
5. consider if warning signs or other warning devices can be installed to reduce the risk of an injury or fatality; and
6. if a staff member raises a safety concern address it as a matter of urgency.

Read Part 6 here

Read Part 4 here