PARLIAMENT recently passed sweeping reforms to the Occupational Safety & Health Act 1984.
The passage of the bill is part of the Government’s hectic reform program preceding the widely predicted February 2005 State election and follows significant changes to the Workers’ Compensation Act.
Parliament has made it more difficult for workers to sue for common law damages while significantly increasing the penalties (payable to the Crown) for workplace and other injuries. The changes do not become law until they are promulgated – which is expected in February.
The maximum penalty for serious offences has increased from $200,000 to $500,000, for corporations, and a maximum of $312,500 with up to two years imprisonment for individuals. An officer of a corporation will be personally liable for accidents causing serious injury if the offence was attributable to any neglect on the part of that person, where the person knew that the contravention could cause serious injury; and acted in disregard of that likelihood.
If the prosecution cannot prove the person knew of the likelihood of serious injury, the person may nonetheless be held liable for a lesser offence (not punishable by a term of imprisonment) if the injury was attributable to ‘any neglect’ on the part of the person.
There are important changes to ‘improvement notices’. Despite concerns they could be used as blackmail tools or industrial weapons, the reforms enable safety officers to issue provisional improvement notices. Unless subsequently set aside, the notice will require the employer to remedy the contravention. While the Government has said it is unlikely that such notices will be mis-used, this seems optimistic.
The reforms ‘beef up’ the application of the act to labour hire and like labour hire situations.
The duties of care owed by the act are extended to residential premises (provided by employers for a worker) and the means of access to and from the work place.
Michael Bruce, partner
9288 6865
Phillips Fox
• Phillips Fox is holding a seminar on the effect of the workers’ compensation changes on November 23 at the Duxton Hotel.