PCBU Responsibilities (Person Conducting a Business or Undertaking) Training Online.

Primary duty of care.

• safe systems of work
• a safe work environment
• accommodation for workers, if provided, is appropriate
• safe use of plant, structures and substances
• facilities for the welfare of workers are adequate
• notification and recording of workplace incidents
• adequate information, training, instruction and supervision is given
• compliance with the requirements under the work health and safety regulation
• effective systems are in place for monitoring the health of workers and workplace conditions.

PCBUs must also have meaningful and open consultation about work health and safety with its workers, health and safety representatives and health and safety committees.

PCBU must consult, cooperate and coordinate with other PCBUs with whom they share duties.

Further responsibilities of a PCBU.

Understanding Your Legal Obligations

PCBU responsibilities represent the foundation of Australia’s workplace health and safety structure, yet the term itself frequently generates confusion, particularly given the serious legal consequences for failing to comply!

However, it’s worth noting that similar concepts, such as the duty holder, exist in other jurisdictions, emphasising the importance of management and control to ensure safe working conditions.

What is a PCBU?

Is it genuinely a person?

What exactly constitutes an “undertaking”?

These questions arise frequently, and quite justifiably. Sadly, the phrase “Person Conducting a Business or Undertaking” can be inherently misleading.

This article aims to tackle these questions.

Hopefully in a straightforward and educational manner, though be warned – we must navigate some legal terminology to gain a proper understanding!

Grasping the responsibilities of a PCBU is vital for establishing safe working environments and ensuring adherence to current legislation.

Whether you’re running a small business, leading a corporation, managing in the public sector, or responsible for a church, club, or association, understanding your PCBU obligations helps safeguard your workers and organisation, as well as its leadership team.

Proper management of work health and safety yields numerous advantages beyond mere compliance. Organisations implementing robust safety systems typically see fewer incidents, better staff morale, higher productivity, and a stronger reputation.

By viewing PCBU responsibilities as an opportunity rather than an obligation, businesses can foster positive workplace cultures where safety becomes woven into daily operations.

What is a PCBU Under Work Health and Safety Laws?

The term ‘Person Conducting a Business or Undertaking’ (PCBU), emerged with the harmonised work health and safety legislation across Australia. This terminology marks a significant departure from the traditional ’employer’ concept to a broader category encompassing various business arrangements.

A PCBU refers to any person or entity conducting a business or undertaking, whether independently or with others, for profit or not.

This definition, as previously noted, can create confusion, particularly due to its use of the word “person”!

When reviewing the list below, as outlined in the Work Health and Safety (WHS) Act 2011, you’ll notice that whilst it casts a wide net of responsibility extending beyond conventional employment relationships, it largely includes “entities” that cannot be defined as persons.

Hence the bewilderment.

Here’s the list the WHS Act applies as PCBUs including:

• Companies and corporations
• Sole traders and self-employed persons
• Partners in partnerships
• Government departments and public authorities
• Local councils and municipal corporations
• Schools and educational institutions
• Churches
• Clubs and some associations
• Entities that include the Commonwealth

However, the WHS Act specifically excludes volunteer associations not employing anyone, elected members of local authorities acting in that capacity, and workers or officers when acting in those capacities.

The concept acknowledges that modern work arrangements often involve complex structures where multiple parties may influence workplace safety.

The term PCBU relates to the conduct of the business rather than simply the employment relationship, recognising that safety responsibilities extend to all who can influence how work is performed.

Now this leads us to consider another crucial concept central to properly understanding PCBU. And that is “primary duty”.

Primary Duty of Care.

The WHS Act establishes a primary duty of care at the heart of PCBU responsibilities.

This obligation requires PCBUs to actively manage workplace hazards and risks, ensuring protection of workers and others through appropriate control measures. This itself can cause confusion regarding who bears actual responsibility.

The Primary Duty of Care rests with the PCBU, but where that is an entity (i.e., most cases), the actual responsibility falls primarily on the person and/or people who exercise (the most) control to ensure the health and safety of workers occupying the premises. So this in most cases would be the Board (and Chairman), Executive (especially the CEO and the corporate Secretary) or the Managing Director.

In clubs, schools, or certain associations, it would be the “responsible officer” who typically holds the most senior position within the organisation.

However, in the case of a corporation, for example, that doesn’t mean the CEO is the PCBU. He or she is not. They are simply the responsible officer for that corporation, which itself is a PCBU.

Safe Work Australia offers more comprehensive information on this important topic https://www.safeworkaustralia.gov.au/law-and-regulation/duties-under-whs-laws/officer-duties and this video is also helpful: https://youtu.be/vw4CF_WVVoQ.

PCBU duty to ensure health and safety of workers

The primary duty of care mandates that a PCBU must ensure the health and safety of workers engaged by the PCBU or whose activities in carrying out work are influenced or directed by the PCBU.

Significantly, this duty covers both physical and psychological health, requiring PCBUs to address all workplace hazards that could potentially cause harm, whether physical or psychological in nature.

The obligation extends beyond traditional employees to include contractors, subcontractors, apprentices, volunteers and others performing work in the business.

To fulfil this primary duty of care, a PCBU must:

• Provide and maintain a safe work environment
• Ensure safe systems of work
• Provide for the safe use, handling and storage of plant, structures and substances
• Ensure adequate facilities for the welfare of workers, including access to washrooms
• Provide necessary information, training, instruction and supervision
• Monitor workers’ health and workplace conditions to prevent illness or injury

The duty also extends to others who may be affected by the work carried out as part of the business or undertaking.

PCBUs must ensure these individuals are not exposed to hazards that could lead to health and safety risks arising from the conduct of the business or undertaking.

In managing these risks, PCBUs must consider relevant matters including the likelihood of hazards and the degree of harm that might result.

So far as is reasonably practicable” explained.

Remember earlier we mentioned that there would be some legal references in this article to fully understand the concepts behind PCBU? Well, here’s an important one.

The phrase “so far as is reasonably practicable” is a “legal test” that can be applied, and thus is crucial to understanding the extent of PCBU obligations.This qualification recognises that while the duty to ensure safety is absolute, the measures required to achieve this must be reasonably able to be done in the circumstances.

To determine what is reasonably practicable, the WHS Act requires PCBUs to consider:

• The likelihood of the hazard or risk occurring
• The degree of harm that might result
• What the PCBU knows, or ought reasonably to know, about the hazard or risk and ways of eliminating or minimising it
• The availability and suitability of ways to eliminate or minimise the risk
• The cost of available ways of eliminating or minimising the risk, including whether the cost is grossly disproportionate to the risk

These considerations are assessed using what’s known as a risk matrix, such as the one in the diagram below.

The risk matrix assesses the “consequences” of the risk (from Insignificant to Catastrophic”) on the X axis, and the “likelihood” of the risk actually happening, (from Rare to Almost Certain) on the Y axis.

Determining where any given identified risk sits on the risk matrix helps a PCBU decide on priorities of action and implementation, www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/identify-assess-and-control-hazards/managing-risks recommends PCBUs utilise the cyclical process demonstrated in the below diagram:

Image attribution: www.safeworkaustralia.gov.au

It does not permit PCBUs to simply choose the cheapest or easiest option if more effective control measures are reasonably available.

Risk Management should employ a hierarchy of control mechanisms as demonstrated in this diagram and outlined more by Safe Work Australia here: https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/identify-assess-and-control-hazards/managing-risks.

 Image attribution: www.safeworkaustralia.gov.au

Key PCBU Responsibilities.

The WHS Act and WHS Regulations outline specific responsibilities that PCBUs must fulfil to meet their primary duty of care. These obligations encompass a range of practical requirements from maintaining safe workplaces to engaging in meaningful consultation with workers.

Understanding these key responsibilities helps PCBUs implement effective systems and processes to manage workplace health and safety risks.

Risk management forms a central part of PCBU responsibilities. This process involves:

• Identifying hazards and risks in the workplace
• Assessing the likelihood and severity of potential harm
• Implementing control measures to eliminate risks where possible, or minimise them when elimination is not reasonably practicable
• Regularly reviewing and improving control measures

When implementing control measures, PCBUs must follow the hierarchy of controls, prioritising elimination of risks before considering other measures such as substitution, engineering controls, administrative controls, and personal protective equipment.

PCBUs must also ensure the provision of adequate facilities for workers, including toilets, drinking water, washing and dining areas. For accommodation owned or under their management and control, PCBUs have additional responsibilities to ensure these facilities are safe and adequate. In addressing safety issues, PCBUs should work closely with their work group to identify and mitigate risks effectively.

Consultation requirements with workers and other PCBUs.

Work health and safety consultation is a legal requirement for all PCBUs. Under the Work Health and Safety Act 2011, PCBUs must consult with workers on matters that directly affect their health and safety.

This includes:

• Identifying hazards and assessing risks
• Making decisions about ways of eliminating or minimising risks
• Making decisions about facilities for workers’ welfare
• Proposing changes that may affect health and safety
• Developing health and safety policies and procedures

Effective consultation involves sharing relevant information with workers, giving them reasonable opportunity to express views, taking those views into account in the decision-making process, and advising workers of the outcome.

The WHS Act also provides for the election of health and safety representatives and the establishment of health and safety committees to facilitate consultation. PCBUs must facilitate these arrangements when requested by workers.

When multiple PCBUs are involved in work at the same location or as part of the same project, they have a duty to cooperate and coordinate activities with each other in relation to the same matter.

This requirement recognises that modern working arrangements often include PCBUs involved in complex structures, each with their own WHS responsibilities. This approach helps prevent injury or illness in shared workplaces, taking into account the roles of HSRs (Health and Safety Representatives) and HSR (Health and Safety Representative) systems.

PCBU Training and Compliance Solutions.

Our comprehensive PCBU Responsibilities Online Training course delivers clear, practical guidance on managing workplace safety responsibilities under the WHS regulations and legislations.

Our expert team of workplace safety specialists brings years of industry experience to help you navigate your duty of care to ensure compliance with all aspects of Work Health and Safety laws.

Contact us to learn how our PCBU training solutions can help you create a workplace where the health of workers become embedded in everyday operations, driving both compliance and business success.