Gearing up for OH&S changes....Directors need to ensure that they and their organisations are fully across the changes in occupational health and safety (OH&S) laws and regulations expected to be introduced later this year. Safe Work Australia has moved to harmonise Australia's OH&S laws across the states and territories with the release of the Model Work Health and Safety Regulations for public comment by 4 April. It has also released an issues paper and draft model codes of practice. The regulations are extensive - running to more than 500 pages - and cover areas such as representation and participation, general workplace management, hazardous work, plant and structures, construction, hazardous chemicals and major hazard facilities, notes Maurice Baroni, a partner in Clayton Utz's Workplace Relations and Safety practice. There will be subtle - and not so subtle differences - in OH&S requirements, which will apply in each state and territory. That being the case, it will be important that every organisation, and its directors and officers, understand the full extent of their legal obligations. In some cases, an organisation will now be subject to more detailed and specific regulation, or less regulation, depending on the jurisdiction and industry in which they operate. An example of this is principal contractor obligations. In Victoria, a principal contractor's OH&S obligations will be significantly expanded; the obligations in NSW and Queensland, however, appear to be somewhat less detailed. Failure to ensure the organisation is meeting its changed obligations in a particular jurisdiction could give rise to personal liability for a director or officer. Accordingly, it will be critical for directors and officers to ensure that their organisation is across the specific OH&S obligations and requirements applicable to each jurisdiction in which it operates. James Simpson, a senior associate at Clayton Utz, adds: The use of model codes of practice will be interesting, as they set a base line for compliance for matters such as managing risks, consulting on health and safety, managing the work environment and facilities, as well as specific areas of concern, such as confined spaces, falls and hazardous chemicals. Baroni and Simpson say it is critical that directors and officers ensure that their organisations are fully across the changes in each state and territory in which the organisation operates. Obviously, the extent of detailed understanding of the regulations and codes of practice required of a director will depend on the size and nature of the organisation. At a bare minimum, however, directors will need to fully satisfy themselves that the organisation has assessed the impact of the regulations and codes of practice, and ensure that there are appropriate systems to manage ongoing compliance. Directors will need to understand the demands placed on the organisation as a result of the new regulations and codes of practice, and ensure sufficient resources are dedicated to ongoing risk identification and management. Baroni says: Once the final regulations and codes of practice are published, directors need to take action to ensure that appropriate systems are in place to review the changes that may be required to their organisations' OH&S practices in each relevant state and territory, ensure that compliance is achieved at the time the new laws come into effect (through systems such as compliance action plans). Boards should satisfy themselves that these reviews and compliance action plans are comprehensive, practical and achievable, and managed by competent, appropriately trained employees, consultants and/or advisers. Boards will also need to regularly monitor progress, to ensure that compliance is achieved on time, adds Simpson. From AICD The Boardroom Report - 23 March 2011 |