$180,000 Fine for Workplace Explosion Highlights Urgent WHS Lessons
A recent NSW Industrial Court decision resulting in a $180,000 fine to Hibernian Contracting Pty Ltd delivers a powerful wake-up call for business owners and managers about workplace health and safety (WHS) responsibilities. The ruling clearly emphasizes that businesses can't simply avoid accountability by claiming the work performed was "outside the contract scope."
The Case in Brief: What Went Wrong?
In August 2022, a Hibernian employee suffered severe burns after sparks from a grinder ignited waste oil in a tank, causing an explosion and engulfing him in flames. Despite Hibernian arguing that the hot work was beyond their contractual duties, the Court found otherwise, highlighting the company's inadequate safety systems and lack of effective risk management procedures.
This tragic incident underscores critical lessons: employers must proactively identify and mitigate WHS risks—even when tasks appear peripheral or evolve beyond original agreements.
What Does This Mean for Your Business?
As a Business Owner or Manager, it’s crucial to understand your duty under the NSW Work Health and Safety Act 2011. Your obligation extends beyond contracts, especially when conditions on-site evolve or expand. The consequences of neglecting your WHS duties—both legally and financially—are significant.
Key Takeaways for Business Owners and Managers:
1. Comprehensive Risk Assessments
Before commencing work—particularly tasks involving hazardous materials or tasks—conduct thorough risk assessments. Clearly identify risks, document procedures, and communicate these clearly to your workforce.
2. Scope of Work Doesn't Limit Responsibility
The Hibernian case reinforces that the scope of your responsibility extends beyond contractual lines. Managers must remain vigilant in supervising work, ensuring compliance with all safety measures, even if tasks shift or additional requests arise during a project.
3. Proper Training and Supervision is Non-Negotiable
Ensure your team receives appropriate training and instruction, particularly for high-risk activities like hot work. Regularly assess and update training requirements and provide direct supervision when necessary.
4. Effective Safe Work Method Statements (SWMS)
SWMS are essential tools that document safety protocols clearly. Regularly review and update these documents, making sure they cover any scenario workers might face—especially hazardous or unforeseen tasks. They must be developed in context of the work being undertaken – IE – generic doesn’t cut it.
Taking Action to Protect Your Business
Failing to proactively manage WHS can result in severe penalties, reputational damage, and serious injury or death of workers. The cost of neglecting workplace safety far outweighs any perceived short-term savings or convenience.
Partner with Anzen Safety and Training to Protect Your Workforce
If you're concerned about your business's WHS obligations or unsure how robust your current safety practices truly are, partnering with workplace safety experts is a proactive solution.
Anzen Safety and Training specialises in practical, innovative, and tailored WHS solutions designed to meet your unique business requirements. With extensive industry experience and up-to-date knowledge of NSW WHS regulations, Anzen provides comprehensive risk assessments, clear safety management procedures, and targeted training to keep your workforce safe and compliant.
Don't wait for an incident to expose gaps in your safety management. Take action now to safeguard your employees, your business, and your future. Contact Anzen Safety and Training today and build a culture of safety and compliance.
info@anzen.com.au
1300 269 361
