OHS Fines on the Rise

Higher OHS penalties for businesses which fail to protect their workers reflect a growing community emphasis on the importance of workplace safety. ROGER BUCKLEY reports on the trend of higher fines for OHS offences.

INCREASING community, government and union expectations of employers to provide a safe workplace resulted in the Occupational Health and Safety Act 2004 (OHS Act) which substantially increased penalties, bringing Victoria broadly into line with the rest of Australia.

The Courts have been using these increased maximum penalties. In August 2008, the Victorian County Court imposed the highest ever fine for offences under the OHS Act of $1.25 million against Fosters Australia Pty Ltd following the death of a worker at the company’s Abbotsford plant in 2005.

In May 2009 this record was exceeded by the $1.4 million fine against AAA Auscarts Pty Ltd.

Whilst these examples are not from the extractive industry, they are clear precedents which could be used as case law to support similar level fines in our industry.

It is not just cases that involve fatalities where penalties are increasing, but also significant penalties are being imposed in cases involving injury.

The graph above shows that the average fines imposed under OHS law has increased significantly in recent years. This increase has coincided with WorkSafe’s 2003 policy of pursuing cases involving fatalities in the County Court together with a greater appetite to appeal against sentences perceived as too light.

Higher penalties in OHS prosecutions are an indication of the seriousness with which workplace health and safety is now being treated. This trend of increased fines should be viewed as a significant business driver to be proactive in work place safety. Many of the cases taken to court show a history of OHS complacency.

A proactive approach to identifying hazards, encouraging reporting, investigating incidents and ensuring there are robust auditing systems in place are all significant steps in reducing the risk of serious incidents occurring. This approach may also help to reduce any potential financial, business and social consequences of prosecution.

You must be logged in to post a comment Login