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What or Who is a PCBU?

The words, “person conducting a business or undertaking” (PCBU), appear frequently in the WHS Act.

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"Person" as in Person Conducting a Business or Undertaking

 

In laws about interpreting legislation, the term “person” means more than just an individual human being, i.e."natural person."

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Definition of Natural Person

Noun

  1. An individual human being, with consciousness of self

  2. A human being, as opposed to a “legal” person, which is an entity or group considered collectively as a single individual for legal purposes.

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In the legal sense "person" means a company, an unincorporated association, and a partnership. In short: a business entity. Therefore a "Person" is not always a natural person (human being.)

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The PCBU has the ultimate responsibility for work health and safety and cannot pass that responsibility on to someone else. Section 5 of the Work Health and Safety (WHS) Act 2011 defines what a PCBU is. Common questions we hear are:  

 

Is the Director or CEO of a company a PCBU?

A PCBU is a business entity. Business owners and company directors are always human beings. Therefore, they are Officers of the PCBU. Officers represent the PCBU and have their own duties under WHS Law. An officer is a person who makes decisions, or participates in making decisions, that affect the whole, or a substantial part, of a business or undertaking and has the capacity to significantly affect the financial standing of the business or undertaking. (Personnel who are responsible only for implementing those decisions are not considered an officer.)

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You are considered to be an officer if you are:

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Is a Self - Employed Person a PCBU?

Yes. A self-employed person is a PCBU. He or she is a recognised legal person and has not been excluded from the meaning of a “person conducting a business or undertaking” in Section 5 of the WHS Act. This is really the only instance when a PCBU is actually also a human being.

 

What types of entities are PCBUs?

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  • a company

  • partners in a partnership

  • sole traders and self-employed persons

  • an association if it has one or more employees

  • a volunteer association that employs anyone to carry out work

  • a government department

  • a public authority (including local government councils)

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What types of entities are not PCBUs?

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  • An elected member of a local authority

  • A volunteer association that does not employ anyone, and if none of its volunteers employs any person to carry out work for the volunteer association

  • A strata body corporate responsible for common areas used only for residential purposes

  • A person who is engaged solely as a worker or an officer

 

Safe Work Australia Interpretive Guidelines

 

Safe Work Australia has a number of guides on WHS Law, Duty Holders and WHS duties. You may find this one useful in regard to what a PCBU must do: Duties of a PCBU | Safe Work Australia

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14 August 2018 (Revised 18 May 2024)

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