Thursday, February 16, 2012

NEW NATIONAL HEALTH & SAFETY LAWS - A MUST READ 3 PART SERIES!

NEW NATIONAL WORKPLACE SAFETY LAWS
 Affects ALL Businesses from 1 JANUARY 2012


Have you familiarised yourself with the new legislation and taken the appropriate actions yet? You may be exposed!
In this 3 part series, we will be providing you with an overview of the new National Work Health and Safety Legislation (including the Act, Regulations and Codes of Practice) takes effect from 1 January 2012 and will mean new laws for all businesses in Australia regardless of their size!

The upside is that these new laws will standardise Workplace Health and Safety (WHS) legislation around the country (yahoo, for those of us running national businesses)!
And if you think, I don’t have any employees so I don’t need to bother with this, well you may need to think again!

If you work with anyone in your business, regardless of their employment status, you are likely to be subject to these new laws. Compliance with these new laws is clearly expected (there are many breaches and penalties identified in the law), regardless of the size of the business!
These changes place much more profound duties on business owners and directors within businesses to proactively manage health and safety themselves. You can no longer just get by with minimal knowledge.

Although South Australia, Western Australia, Tasmania and Victoria are yet to confirm transitional arrangements, if you are running a National business, you are advised to adopt the new standards for workers in those states and be mindful of any additional requirements of State Legislation until the transition period is completed.
Who is affected?

The changes impact ALL businesses with operations in Australia.

What are the Key changes?
Each state has different arrangements in the transition period, however the key changes are -  

  • 'Work Health and Safety' or WHS replaces the term Occupational Health and Safety (OH&S)
  • The concept of 'Persons Conducting a Business or Undertaking' (PCBU)as opposed to employer has been introduced with the focus on the work arrangements and relationships to carry out the work. This is aimed at ensuring the most senior people in businesses proactively engage in the WH&S of the business on not assuming delegation is ok. The duties of PCBUs have increased. The PCBU also has greater requirement to proactively consult, co-operate and co-ordinatewith other PCBU’s (duty holders) and workers
  • Employees are now referred to as 'workers’ (covering a wider range of employment statuses) and who will now also become duty holders for their own workplace safety
  • Workplace Health and Safety Representatives (WHSRs) who will be the primary work health and safety mechanism for workers to voice their health and safety concerns. WHSR’s now have the power to issue provisional improvement notices
  • 'Reasonably Practicable' and ‘Due Diligence’ requirements and meanings have been more clearly defined
  • Greater ‘entry rights’ for members of employee authorised representatives (e.g. unions)
  • Greater emphasis on proactively managing WHS, including auditing all related businesses
  • Greater and many more penalties for non-compliance - up to $3 million for a corporation and $600,000 for an officer and a potential five-year jail term under certain areas (for EACH breach)
  • New Codes of Practices (some are still being finalised)
  • Bullying has been more clearly defined

In this first article we will be discussing the concept of the PCBU and Workers.

Who’s responsible? THE PCBU Concept

Under the new legislation, 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. Further, 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 may include Directors, CEO/COO/MD, Senior Managers, management teams, managing partners in a partnership or a sole trader.

Specifically the laws means that the PCBU must take all reasonable and practical steps to eliminate any risk of injury to workers, and workers ares considered in the most broadest of terms.

This means there is a more emphasis and focus on a positive duty encompassing all persons likely to impact on the workplace and on workers or to have an effect on the health and safety of the people doing the work.  PCBU’s also now have a much greater requirement to consult with other PCBUs and workers about work health and safety.

It is not only ‘employers’ who need to exercise caution. This legislation also captures designers, manufacturers, importers, suppliers, installers, constructors and commissioners of plant, substances or structures. If these activities are undertaken in a jurisdiction where the WHS laws are in force then those laws now apply to your business, irrespective of whether your business employs people in that jurisdiction. For instance, if a business manufactures products in Queensland but supplies them to businesses in New South Wales, they are subject to compliance with the laws, including the penalties.

Who is a worker?

A key change under the new act is a new definition of who constitutes a worker. The definition covers anyone working for the business, all employee types on the payroll, labour hire staff, temps, apprentices, people on work experience, volunteers, contractors, sub contractors, workers of related businesses. Visitors are also included in this responsibility.

The PCBU’s in all related business must consult, co-operate and co-ordinate together to ensure that they provide a safe place to work and that workers are trained to comply with safety requirements.

In the next article we will discuss the concepts of Due Diligence, Reasonably Practicable and Consultation Requirements.
THE BUSINESS AGENCY - HR SERVICE
The Business Agency specialises in assisting businesses with their Human Resource, strategy and people issues.  We ensure you have effective protection whilst ensuring we deploy strategies and approaches that work for your business in a pragmatic and straightforward way.

To assist businesses in complying with these new laws, The Business Agency has developed a number of packages.  Pricing for these packages are discounted by 10% if booked and paid for prior to 28 February 2012.  To request further information contact The Business Agency.

WHS Auditing Tool (DIY) – The Business Agency auditing tool provides a standard business the means to carry out a comprehensive audit of their business, to meet their due diligence and identify where the gaps are in their current WHS System.  A brief reference guide enables the auditor to find further details on compliance. This is recommended to be used by trained managers only.  From $99 + gst*

Executive & Management Briefing – This is a three hour overview of the legislation and compliance issues for leaders in a standard business*.  Price $1,795 + gst *
Executive Briefing and Due Diligence Training – This is a one day or 2 half day sessions, designed to ensure the leaders in your business understand the law and ensure they understand how to manage due diligence effectively (including auditing and risk management assessment). Price- 1 day $2,350 or 2 x ½ days $3,250 + gst *

Staff training – We have developed a standard WHS training module that is delivered LIVE by our HR experts and includes a WHS quiz to enable your business to meet its due diligence obligations for providing effective training.  This training is delivered using online tools enabling staff from all over Australia to attend (2 hours including the quiz).  Price $695 + gst *
WHS Auditing and Training Expert – We will provide a HR/OHS expert onsite to provide one day of standardised OHS training for your business (including Management & Staff Training), audit your business (one site) and provide a full report to the board (including gaps in your WHS system and recommendations for meeting your ‘Reasonably Practicable’ obligation. Additional sites are extra. Price - $4,950 + gst *


 *Terms and Conditions apply.  Pricing is based on a standard office or retail environment (non-manufacturing/ light industrial) with up to 8 people per session.  The Business Agency can provide HR services and review your WHS compliance for a range of businesses.  Please enquire about our custom consulting, training and coaching services.


This article is intended to provide commentary and general information.  It should not be relied upon as comprehensive or legal advice.  Formal legal advice may be necessary in particular transactions or on matters of interest arising from this article.  The Business Agency is not responsible for the results of any actions taken on the basis of information in this article, nor for any error or omission in this article.