Companies granted 12-month delay on harmonised OH&S laws: Report

Companies forced to make “significant changes” to comply with national occupational health and safety laws will have an extra 12 months to comply, after Victoria and Western Australia said they would not reach the January 2012 deadline due to delays during the preparation process this year.

According to The Australian, Workplace Relations Minister Chris Evans will announce that companies which need to make “significant changes” will have up to 12 months’ grace to switch over to the national system. Safe Work Australia will provide transitional assistance.

Evans’ office was contacted for confirmation this morning, but did not respond before deadline. It is not yet clear how the Government will define “significant changes”.

Advocates of harmonisation point to inefficiencies for companies operating across different jurisdictions, and say the legislation is best practice.

The new laws will mean that:

• Prosecutors will need to prove the employer did not take all reasonably practicable measures to prevent the risk to health and safety from taking place, reversing the onus of proof from the previous OH&S Act.
• Officers of a corporation will also be required to exercise due diligence to ensure the organisation complies with OH&S responsibilities, which is already in place in New South Wales.
• Companies will have broader obligations to consult with people performing work, including contractors.

The Government says that harmonisation has the potential to deliver up to $2 billion per annum in productivity improvements in addition to a national benefit of $250 million per annum by cutting red tape for businesses.

Jessica Fletcher, senior associate Hall & Wilcox, says the mooted delay is not unsurprising given complaints about delays detailing the associated regulation and the decision of Victoria and Western to not introduce the legislation.

“We’re also getting to mid-November with an expected starting date of January 1 and there’s still not been finalisation of the legislation in all jurisdictions, including the federal jurisdiction,” Fletcher said, adding this was unusual because you would expect the Federal Government to be leading the charge on its own reforms.

Fletcher says businesses should continue to work towards harmonisation, “maybe with a bit more breathing room”.

“But it’s too drastic to say they should down tools – 12 months goes very quickly,” Fletcher says.