WHS Compliance - Using the Due Diligence Defence

A Presentation for QBM April 2013

WHS  Compliance    Using  the  Due  Diligence  Defence  

A  Body  Corporate  Duty  of  Care  is  Three  Dimensional  

The  New  WHS  Approach    

‘Work’  is  the  key  concept  

not  ‘Workplace’  

PCBU  concurrent  

duCes  of  care,  consultaCon  &  co-­‐operaCon  

PosiCve  duty  for  officers  to  exercise  due  diligence  

Significantly  increased  personal  liability  

Work  Health  Safety  Stakes  Are  Higher  •  Recklessness  /  risk  

–  OC  /  BC  $3million  –  Volunteer  commiRee  -­‐  Nil  –  CommiRee  honorarium  $600,000  /  5  

years  jail  –  SM  $300,000  /  5  years  jail  

•  Breach  /  risk  –  OC  /  BC  $1.5  million  –  Volunteer  commiRee  -­‐  Nil  –  CommiRee  honorarium    $300,000  –  SM  $150,000  

•  Breach  –  OC  /  BC  $500,000  –  Volunteer  commiRee  -­‐  Nil  –  CommiRee  honorarium    $100,000  –  SM  $50,000  

But  the  Defence  for  Personal  Liability  is  Clearer  

1.  Keep  up  to  date  2.  Understand  operaCons  3.  Eliminate  or  minimise  risks  4.  Process  informaCon  5.  Supply  resources  and  

processes    6.  Verify  provision  and  use  of  

resources  and  processes  (Due  diligence  defence  S.27(5)  WHS  2011)  

Persons  Who  Are  Not  A  PCBU    

A  strata  body  that  is  responsible  for  any  common  areas  used  only  for  residenCal  purposes  is  not  a  PCBU  so  long  as  no  worker  is  engaged  as  an  employee  (s.7  WHS  Act  2011)  

Not  Only  For  ResidenCal  Purposes  •  OC  /  BC  employees  •  Common  property  with  

commercial  lots  •  On-­‐site  lecng  agent  •  Lots  used  as  home  businesses  •  Nannies  employed  in  lots  •  Lots  for  short  term  

accommodaCon  •  CommunicaCon  towers  /  

satellite  dish  /  adverCsing  signs  

The  Basic  WHS  Duty  of  Care  

“To  ensure,  so  far  as  is  reasonably  pracCcable,  the  health  and  safety  of  workers  and  other  persons”    Hargreaves  v  Telstra  Corp  Ltd  [2011]  AATA  417  (17  June  2011)  is  the  high  water  mark  

The  Latest  From  the  High  Court  on  Safe  Systems  

•  Amputee  slipped  on  chip  •  “Reasonable  care  

requires  the  inspecCon  and  removal  of  slipping  hazards  at  intervals  not  greater  than  20  minutes”  

•  Damages  awarded  $580,299.12  +  costs  

Strong  v  Woolworths  [2012]  HCA  5,  7  March  2012      

A  Strata  Body’s  General  DuCes  About  Asbestos  

•  To  ensure  that  exposure  to  airborne  asbestos  is  eliminated  or  minimised  so  far  as  reasonably  pracCcal  

•  To  ensure  that  exposure  standards  for  asbestos  are  not  exceeded    

s.420  WHS  RegulaCons  2011  

Your  Insurance  Does  Not  Cover  This  Risk  

Strata  Bodies  Have  Unlimited  Liability    

•  An  uninsured  owners  corporaCon  or  body  corporate  must  sCll  pay  a  damages  award  

•  Unlike  shareholders  and  club  members,  lot  owners  do  not  have  limited  liability  

•  An  administrator  will  be  appointed  to  strike  a  levy  to  cover  damages  and  costs  

Think  3-­‐D  ‘DemonstraCng  Due  Diligence’  

We  Can  Help  You  Develop  a  SystemaCc  Approach  to  Due  Diligence  

•  27  page  checklist  style  report  

•  Specifically  addresses  the  6  due  diligence  requirements  

•  Contains  8  easy  to  use  forms  and  precedents  

•  Customised  for  each  OC  /  BC  at  $395  +  GST  

About the presenter - Michael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the area of strata title law. He is a Fellow of the Australian College of Community Association Lawyers. He was formerly an Adjunct Lecturer with Charles Sturt University. He appears weekly on SKY News Business Channel's Property Success with Margaret Lomas and is a regular panellist for the property edition of Your Money, Your Call for the same channel. You can read Michael’s blog at www.michaelteys.com and follow him on Twitter at @MichaelTeys.com

Teys Lawyers practice nationally in strata title law representing owners corporations, bodies corporate and apartment owners. The firm’s practice groups include building defects, strata community disputes, strata titles property law, by-laws and levy collection.

Subscribe for their free e-newsletter StrataSpace and find out more about them at www.teyslawyers.com.au

About  the  Presenter