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Minimise WHS Risk to Minimise Financial Loss

In your role as a WHS manager you may sometimes need to seek approval for a WHS budget or WHS expenditure that you propose.

For example: Glencore in Queensland, recently identified that the mineral oil used in the transformers of their Mt Isa copper mine was a fire risk. They used the hierarchy of control measures as per the WHS Regulation 2017 to minimise the risk so far as is reasonably practicable. They replaced the mineral oil with a biodegradable, synthetic oil which almost completely eliminated that fire risk. In so doing they have further minimised the risk of loss from fire damage, reduced the risk of harm to workers, and have demonstrated compliance with WHS law.

You may have areas in your workplace where the hierarchy of controls needs to be revisited to ensure that controlled hazards and risks remain controlled.

Eliminate or Minimise WHS Risks


WHS risk management principles are covered in sections 17,18, and 19 of the WHS Act and clauses 32-28 of the WHS Regulation. New clauses 55a-55d introduced at the end of 2022 cover non-physical risks and hazards. A PCBU must eliminate or minimise all risks to health & safety so far as is reasonably practicable. Company directors and business owners must ensure this happens in the real world.

Section 19 (3) of the WHS Act 2011 says that a PCBU must ensure so far as is reasonably practicable that:

  • the work environment is without risks to health and safety

  • the plant and structures are safe

  • the systems of work are safe

  • the use, handling, and storage of plant, structures, and substances are safe

  • there are adequate facilities for the welfare at work of workers

  • information, training, instruction or supervision that is necessary to protect all persons from risks to their health and safety arising from work is provided

  • that the health of workers and the conditions at the workplace are monitored for the purpose of preventing illness or injury of workers

Section 27 of the WHS Act covers the specific duties that business owners and company directors must do to ensure the company is meeting its primary requirements. Officers of a PCBU (directors, CEOs, etc) must:

“(e) ...ensure that the person conducting the business or undertaking has, and implements, processes for complying with any duty or obligation of the person conducting the business or undertaking under this Act,

Example. For the purposes of paragraph (e), the duties or obligations under this Act of a person conducting a business or undertaking may include:

  • reporting notifiable incidents,

  • consulting with workers,

  • ensuring compliance with notices issued under this Act,

  • ensuring the provision of training and instruction to workers about work health and safety,

  • ensuring that health and safety representatives receive their entitlements to training.”

Financial Penalties: Not Complying with a Health & Safety Duty

Apart from the safety and legal compliance factors above there are the financial penalties for not complying with a health and safety duty. The penalties have recently been updated. See here: Three Categories of WHS Offences and a Table of NSW Penalty Units (2024) (courtenell.com.au)

20th November 2019 (Updated 13 August 2024)

 

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