Small business ordered to pay $1.4m damages for workplace safety breach

A recent decision in the ACT Supreme Court that resulted in a small business having to pay $1.4 million damages to an injured worker has stressed the need for all employers – including schools – to have a “safe system of work”.

The plaintiff, who initially made a workers compensation claim when he injured his back lifting a pressure cleaner onto a van in 2007, finally left the company due to his ongoing back pain.

Despite the small engine repair business having ramps that could have helped the employee safely load the cleaner onto the van, the Master of the Supreme Court David Mossop found it “breached its duty of care in so far as it failed to implement a safe system of work”.

“There was no evidence of any system, instructions or directions to ensure that the forklift or ramps policy was complied with. Nor was there any system, instruction or direction as to what was to be done if the forklift was not available,’’ he said in his ruling.

“It might not be expected that a small business will address safety and systems of work with the level of bureaucratic formality that can be expected in a large operation. However, the duty of the employer to provide a safe system must still be complied with.’’

With a recent School Governance poll indicating that 70% of respondents did not believe that their schools were fully compliant with workplace health and safety (WHS) laws, this judgment highlights that it is not enough for schools to provide safety equipment in a workplace in order for them to fulfill their obligations in providing a safe workplace.

The ruling has stressed the need for all schools to have in place well documented workplace safety risk management systems and procedures which are properly implemented through staff training and regular compliance checks.

For those schools operating in harmonised states (all except Victoria and WA) it is important to note that all school “officers” (including most members of a school’s executive committee) are required to exercise due diligence to ensure that their school complies with its WHS duties. In particular school officers must:

• Acquire and keep up-to-date knowledge of work health and safety matters.
• Gain an understanding of the nature of the operations of the business or undertaking of the school and understand generally the hazards and risks associated with those operations.
• Ensure the school has appropriate resources and processes to eliminate or minimise risks to health and safety from work carried out as part of the conduct of its business or undertaking.
• Ensure that the school has appropriate processes for receiving and considering information regarding incidents, hazards and risks and responding in a timely way to that information.
• Ensure that the school has, and implements, processes for complying with any WHS duty or obligation.
• Verify the provision and use of the above resources and processes.

For those wanting more information with respect to a school’s WHS obligations under the harmonised laws we recommend you download the CompliSpace WHS Briefing Paper.