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6	
  Things	
  Strata	
  Managers	
  &	
  Commi?ees	
  
Must	
  Do	
  to	
  Avoid	
  Personal	
  Liability	
  for	
  
Work	
  Health	
  &	
  Safety	
  

                                      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



Webinar,	
  7	
  February	
  2012	
  

        ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
This	
  Year	
  the	
  Stakes	
  are	
  Higher	
  
                                                                               •  Recklessness	
  /	
  risk	
  
                                                                                          –  OC	
  /	
  BC	
  $3million	
  
                                                                                          –  Commi?ee	
  $600,000	
  /	
  5	
  years	
  jail	
  
                                                                                          –  SM	
  $300,000	
  /	
  5	
  years	
  jail	
  
                                                                               •  Breach	
  /	
  risk	
  
                                                                                          –  OC	
  /	
  BC	
  $1.5	
  million	
  
                                                                                          –  Commi?ee	
  	
  $300,000	
  
                                                                                          –  SM	
  $150,000	
  
                                                                               •  Breach	
  
                                                                                          –  OC	
  /	
  BC	
  $500,000	
  
                                                                                          –  Commi?ee	
  $100,000	
  
                                                                                          –  SM	
  $50,000	
  


©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
         	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
But	
  the	
  Defence	
  for	
  Personal	
  Liability	
  is	
  Clearer	
  
   1.  Keep	
  up	
  to	
  date	
  
   2.  Understand	
  operaXons	
  
   3.  Eliminate	
  or	
  minimise	
  risks	
  
   4.  Process	
  informaXon	
  
   5.  Supply	
  resources	
  and	
  
       processes	
  	
  
   6.  Verify	
  provision	
  and	
  use	
  of	
  
       resources	
  and	
  processes	
  
   (Due	
  diligence	
  defence	
  S.27(5)	
  
   WHS	
  2011)	
  
         ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
New	
  WHS	
  Laws	
  at	
  a	
  Glance	
  

        EffecXve	
  1	
  January	
  2012	
  in	
  QLD,	
  NSW,	
  ACT	
  

                No	
  ‘grace	
  period’	
  for	
  compliance	
  (OHS	
  plans	
  good	
  for	
  12	
  months)	
  

                   OC	
  /	
  BC	
  =	
  Person	
  carrying	
  on	
  a	
  business	
  or	
  undertaking	
  

                ResidenXal	
  strata	
  exempXon	
  confusing	
  &	
  virtually	
  useless	
  

        Reverse	
  onus	
  removed	
  -­‐	
  prosecuXon	
  must	
  prove	
  breach	
  


©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
The	
  New	
  WHS	
  Approach	
  	
  



                                                      PCBU	
  
                                                                                     PosiXve	
  duty	
  for	
  
‘Work’	
  is	
  the	
  key	
                      concurrent	
                                                                                                                                 Significantly	
  
                                                                                        officers	
  to	
  
  concept	
  not	
                              duXes	
  of	
  care,	
                                                                                                                          increased	
  
                                                                                      exercise	
  due	
  
  ‘Workplace’	
                                 consultaXon	
  &	
                                                                                                                           personal	
  liability	
  
                                                                                        diligence	
  
                                                 co-­‐operaXon	
  




    ©	
  Copyright	
  2012	
  Teys	
  Lawyers     	
     	
     	
     	
     	
         	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
The	
  Basic	
  WHS	
  Duty	
  of	
  Care	
  
                                                                               “To	
  ensure,	
  so	
  far	
  as	
  is	
  
                                                                               reasonably	
  pracXcable,	
  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	
  
©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
         	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Reasonably	
  PracXcable	
  Depends	
  on	
  ……	
  
    Likelihood	
  of	
  risk	
  


    Degree	
  of	
  harm	
  


    Actual	
  or	
  imputed	
  knowledge	
  


    OpXons	
  to	
  eliminate	
  &	
  minimise	
  risk	
  


    Cost	
  v	
  risk	
  


©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Person	
  Carrying	
  on	
  a	
  Business	
  or	
  Undertaking	
  
                                                                           Business	
                                                     Volunteer	
  associaXon	
  
                                                                                                                                         exempXon	
  –	
  strata	
  fails	
  
                                                                                                                                        community	
  purpose	
  test	
  




                                         Profit	
  	
                     PCBU	
                                                 Non-­‐profit	
  




   ResidenXal	
  purposes	
  only	
  
   exempXon	
  –	
  applies	
  only	
  
      to	
  occupants	
  doing	
  
        domesXc	
  work	
                                                Undertaking	
  


     ©	
  Copyright	
  2012	
  Teys	
  Lawyers      	
     	
     	
       	
     	
       	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Common	
  Property	
  Used	
  Only	
  for	
  
            ResidenXal	
  Purposes	
  Means	
  No	
  -­‐	
  	
  
                                                                               •  OC	
  /	
  BC	
  employees	
  
                                                                               •  Common	
  property	
  with	
  
                                                                                  commercial	
  lots	
  
                                                                               •  On-­‐site	
  lenng	
  agent	
  
                                                                               •  Lots	
  used	
  as	
  home	
  businesses	
  
                                                                               •  Nannies	
  employed	
  in	
  lots	
  
                                                                               •  Lots	
  for	
  short	
  term	
  
                                                                                  accommodaXon	
  
                                                                               •  CommunicaXon	
  towers	
  /	
  
                                                                                  satellite	
  dish	
  /	
  adverXsing	
  signs	
  
                                                                               •  Paid	
  workers	
  temporarily	
  on	
  
                                                                                  site	
  
©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
         	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
PCBU’s	
  in	
  the	
  Strata	
  World	
  
                                                                   Owners	
  
                                                                 Corp	
  /	
  Body	
  
                                                                    Corp	
  

                                                                    Strata	
  
                                                                   Manager	
  


                                                                   Building	
  
                                                                   Manager	
  




                                                                 Lot	
  Occupier	
  




©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
        	
       	
          	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Primary	
  DuXes	
  of	
  a	
  PCBU	
  
                                                                               Safe	
  Work	
  
                                                                              Environment	
  


                                     CondiXons	
  &	
  
                                       Health	
                                                                                  Safe	
  Plant	
  &	
  
                                                                                                                                  Structures	
  
                                      Monitoring	
  




                                                                               PCBU	
  
                                                                              Primary	
  
                                                                              Duty	
  of	
  
                              Adequate	
  
                               Welfare	
                                       Care	
                                                                           Safe	
  Work	
  
                                                                                                                                                                 Systems	
  
                              FaciliXes	
  




                                                             Info,	
  
                                                        Training,	
                                  Safe	
  Use	
  
                                                                                                    Handling	
  &	
  
                                                      InstrucXon,	
  
                                                                                                     Storage	
  
                                                      Supervision	
  
©	
  Copyright	
  2012	
  Teys	
  Lawyers      	
       	
             	
      	
        	
       	
          	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
AddiXonal	
  DuXes	
  of	
  PCBU	
  in	
  Control	
  of	
  a	
  
                 Workplace	
  
“The	
  person	
  with	
  management	
  or	
  
control	
  of	
  a	
  workplace	
  must	
  ensure,	
  
so	
  far	
  is	
  reasonably	
  pracFcable,	
  
that	
  the	
  workplace,	
  the	
  means	
  of	
  
entering	
  and	
  exiXng	
  the	
  workplace	
  
and	
  anything	
  arising	
  from	
  the	
  
workplace,	
  are	
  without	
  risks	
  to	
  the	
  
health	
  and	
  safety	
  of	
  any	
  person”	
  	
  
	
  
S.20	
  WHS	
  Act	
  2011	
  

    ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
DuXes	
  of	
  an	
  Officer	
  of	
  a	
  PCBU	
  

                                                                               “An	
  officer	
  of	
  a	
  PCBU	
  
                                                                               must	
  exercise	
  due	
  
                                                                               diligence	
  to	
  ensure	
  that	
  
                                                                               the	
  PCBU	
  complies	
  with	
  
                                                                               its	
  duXes	
  and	
  obligaXons”	
  	
  
                                                                               	
  
                                                                               S.27	
  WHS	
  Act	
  2011	
  

©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
         	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Officers	
  in	
  the	
  Context	
  of	
  Strata	
  

•  Commi?ee	
  members	
  
•  Original	
  owner	
  
•  Compulsory	
  
   administrators	
  
•  Strata	
  managers	
  
•  Building	
  managers	
  


  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
Think	
  3-­‐D	
  ‘DemonstraXng	
  Due	
  Diligence’	
  




 ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  
We	
  Can	
  Help	
  You	
  Develop	
  a	
  SystemaXc	
  
        Approach	
  to	
  Due	
  Diligence	
  


                                                                                                                                                                                                       Seven	
  
                                                                                                          Personalised	
                                                                               essenXal	
  WHS	
  
                                                                                                          le?er	
  of	
  advice	
                                                                      forms,	
  
                                                                                                          to	
  send	
  to	
  your	
                                                                   precedents	
  &	
  
                                                                 FAQ’s	
  for	
  your	
                                                                                                                checklists	
  
                                                                 staff,	
  website	
                       schemes	
  
                                                                 &	
  client	
  
                                            Porqolio	
  risk	
   handouts	
  
                                            assessment	
  
                                            workshop	
  

                    Gap	
  
                    analysis	
  of	
                                           Call	
  now	
  on	
  02	
  9562	
  6500	
  or	
  email	
  us	
  at	
  
                    your	
                                                     service@teyslawyers.com.au	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
                    current	
  
                    process	
                                                  for	
  your	
  fixed	
  fee	
  proposal	
  
©	
  Copyright	
  2012	
  Teys	
  Lawyers       	
      	
      	
      	
           	
          	
           	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  www.teyslawyers.com.au	
  	
  

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Whats New in 2012 a New Work Health & Safety Regime

  • 1. 6  Things  Strata  Managers  &  Commi?ees   Must  Do  to  Avoid  Personal  Liability  for   Work  Health  &  Safety   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 Webinar,  7  February  2012   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 2. This  Year  the  Stakes  are  Higher   •  Recklessness  /  risk   –  OC  /  BC  $3million   –  Commi?ee  $600,000  /  5  years  jail   –  SM  $300,000  /  5  years  jail   •  Breach  /  risk   –  OC  /  BC  $1.5  million   –  Commi?ee    $300,000   –  SM  $150,000   •  Breach   –  OC  /  BC  $500,000   –  Commi?ee  $100,000   –  SM  $50,000   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 3. But  the  Defence  for  Personal  Liability  is  Clearer   1.  Keep  up  to  date   2.  Understand  operaXons   3.  Eliminate  or  minimise  risks   4.  Process  informaXon   5.  Supply  resources  and   processes     6.  Verify  provision  and  use  of   resources  and  processes   (Due  diligence  defence  S.27(5)   WHS  2011)   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 4. New  WHS  Laws  at  a  Glance   EffecXve  1  January  2012  in  QLD,  NSW,  ACT   No  ‘grace  period’  for  compliance  (OHS  plans  good  for  12  months)   OC  /  BC  =  Person  carrying  on  a  business  or  undertaking   ResidenXal  strata  exempXon  confusing  &  virtually  useless   Reverse  onus  removed  -­‐  prosecuXon  must  prove  breach   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 5. The  New  WHS  Approach     PCBU   PosiXve  duty  for   ‘Work’  is  the  key   concurrent   Significantly   officers  to   concept  not   duXes  of  care,   increased   exercise  due   ‘Workplace’   consultaXon  &   personal  liability   diligence   co-­‐operaXon   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 6. The  Basic  WHS  Duty  of  Care   “To  ensure,  so  far  as  is   reasonably  pracXcable,  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   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 7. Reasonably  PracXcable  Depends  on  ……   Likelihood  of  risk   Degree  of  harm   Actual  or  imputed  knowledge   OpXons  to  eliminate  &  minimise  risk   Cost  v  risk   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 8. Person  Carrying  on  a  Business  or  Undertaking   Business   Volunteer  associaXon   exempXon  –  strata  fails   community  purpose  test   Profit     PCBU   Non-­‐profit   ResidenXal  purposes  only   exempXon  –  applies  only   to  occupants  doing   domesXc  work   Undertaking   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 9. Common  Property  Used  Only  for   ResidenXal  Purposes  Means  No  -­‐     •  OC  /  BC  employees   •  Common  property  with   commercial  lots   •  On-­‐site  lenng  agent   •  Lots  used  as  home  businesses   •  Nannies  employed  in  lots   •  Lots  for  short  term   accommodaXon   •  CommunicaXon  towers  /   satellite  dish  /  adverXsing  signs   •  Paid  workers  temporarily  on   site   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 10. PCBU’s  in  the  Strata  World   Owners   Corp  /  Body   Corp   Strata   Manager   Building   Manager   Lot  Occupier   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 11. Primary  DuXes  of  a  PCBU   Safe  Work   Environment   CondiXons  &   Health   Safe  Plant  &   Structures   Monitoring   PCBU   Primary   Duty  of   Adequate   Welfare   Care   Safe  Work   Systems   FaciliXes   Info,   Training,   Safe  Use   Handling  &   InstrucXon,   Storage   Supervision   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 12. AddiXonal  DuXes  of  PCBU  in  Control  of  a   Workplace   “The  person  with  management  or   control  of  a  workplace  must  ensure,   so  far  is  reasonably  pracFcable,   that  the  workplace,  the  means  of   entering  and  exiXng  the  workplace   and  anything  arising  from  the   workplace,  are  without  risks  to  the   health  and  safety  of  any  person”       S.20  WHS  Act  2011   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 13. DuXes  of  an  Officer  of  a  PCBU   “An  officer  of  a  PCBU   must  exercise  due   diligence  to  ensure  that   the  PCBU  complies  with   its  duXes  and  obligaXons”       S.27  WHS  Act  2011   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 14. Officers  in  the  Context  of  Strata   •  Commi?ee  members   •  Original  owner   •  Compulsory   administrators   •  Strata  managers   •  Building  managers   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 15. Think  3-­‐D  ‘DemonstraXng  Due  Diligence’   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au    
  • 16. We  Can  Help  You  Develop  a  SystemaXc   Approach  to  Due  Diligence   Seven   Personalised   essenXal  WHS   le?er  of  advice   forms,   to  send  to  your   precedents  &   FAQ’s  for  your   checklists   staff,  website   schemes   &  client   Porqolio  risk   handouts   assessment   workshop   Gap   analysis  of   Call  now  on  02  9562  6500  or  email  us  at   your   service@teyslawyers.com.au                                                 current   process   for  your  fixed  fee  proposal   ©  Copyright  2012  Teys  Lawyers                                                                                                www.teyslawyers.com.au