New legislation in WA affects statutory fines and penalties coverage

The following caught my eye from the WA Government’s Small Business Development Corporation, thought I would share with the community.

The most important section has been bolded for readers’ convenience. You can also read about the legislation here.

4. Penalties have changed

The WHS Act includes a new offence of industrial manslaughter (s30A). This offence involves substantial penalties for PCBUs in a business where a WHS duty causes the death of an individual, in circumstances where the PCBU knew the conduct could cause death or serious harm.

The WHS Act voids insurance coverage for WHS penalties and imposes penalties for providing or purchasing this insurance.

The new laws also introduce what are known as enforceable undertakings. Here’s an example of how an enforceable undertaking might work:

• If a business operates in a way that commits (or may commit) an offence under the WHS laws (except for industrial manslaughter or a Category 1 offence), they may be able to volunteer to give an enforceable undertaking instead of going through legal proceedings. Giving an enforceable undertaking is not an admission of guilt.
• Their enforceable undertaking is a written commitment to do certain things in an agreed period, and can be accepted or rejected by the Regulator.
• If the undertaking is accepted, the business would complete certain activities which need to be substantial and aim to deliver tangible benefits to the workplace, industry or broader community.

As part of the new laws, there are also reporting requirements for what are known as ‘notifiable incidents’, which includes serious illness, injury or death and dangerous incidents which might happen during the conduct of a business or undertaking.

Thanks to Shane for sharing this with me.