Presentation on theme: "Www.kellyco.com.au | www.kellyco.com.au Workplace Health & Safety: It’s Personal Disability Information & Resource Centre Clare Raimondo, Partner 4 April."— Presentation transcript:
www.kellyco.com.au | www.kellyco.com.au Workplace Health & Safety: It’s Personal Disability Information & Resource Centre Clare Raimondo, Partner 4 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 PCBUOfficerWorker Category I Intentional or reckless indifference to potential for death or serious harm $3 million$600,000 5 years gaol $300,000 5 years gaol Category II Failure to comply with safety duty with risk of death, serious injury or illness $1.5 million$300,000$150,000 Category III Failure 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  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
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