Manage risk or risk a $125,000 fine

While employers have an obligation to manage hazards and risks in the workplace, fulfilling this obligation is not as simple as it may first seem. A recent decision by the Queensland Industrial Court highlights the need for employers to conduct independent risk management on sites and the need to keep risk assessment records.

The facts

In July 2004, during the demolition of a building, an Abigroup Contractors Pty Ltd employee fell approximately 4 metres through a floor penetration (a hole in the floor) and became a paraplegic. In May 2008 construction company Abigroup Contractors was convicted and fined $125,000 for being in breach of section 28 of the Workplace Health and Safety Act 1995 (the Act)(PDF, 766 kB) for failing to ensure the safety of others was not affected by the way it carried out its business.

Abigroup Contractors was unsuccessful in appealing this decision.

The decision

The Industrial Court found that:

Abigroup's use of a sub-contractor's Work Method Statement was insufficient to discharge its risk management obligations
it was difficult to understand how a risk assessment could be completed without generating any written or electronic records
a risk assessment “requires a consideration of a likelihood of an incident occurring, an estimate of its consequences and a rating of risk based upon an analysis of those factors when combined”.

In this case the floor penetrations were not securely covered or marked to prevent an injury from occurring. Principal contractors should be aware of the need for vigilance and decisive action to ensure the safety of workers on-site and be willing to stop the work until employees and sub-contractors meet their safety obligations.

The learning

This case highlights that risk assessment involves much more than a mere awareness of hazards and risks. The Act (PDF, 766 kB) and Risk Management Code of Practice 2007 provide a five step process for risk management.

Identify hazards
Assess and prioritise risks
Decide on control measures
Implement control measures
Monitor and review

Table of contents | The unmeasured loss