Workplace safety is not just a legal requirement, it is a fundamental responsibility that protects lives and sustains business integrity. Recently, a landmark ruling in New South Wales underscored the gravity of neglecting safety obligations. A company was fined $1 million after being found guilty of breaching the Work Health and Safety Act 2011, marking one of the largest penalties ever imposed under Australian WHS law.
This case sends a powerful message to all industries. Failure to prioritise safety can result in devastating financial consequences, reputational damage, and, most importantly, risks to human life. For businesses, it is a reminder that compliance is not optional; it is essential.
Business Fined $1M for Safety Breach
In a record fine, the NSW District Court found that WGA Pty Ltd had breached it’s safety obligations under the WHS Act 2011 by exposing a sub-contractor to risk of death or serious injury. The maximum penalty for the offence is $1.5 million.
How it happened
WGA Pty Ltd, the principal contractor on a Sydney residential project, engaged a subcontractor to install windows. During the work, the aluminium angle he was holding touched high-voltage overhead powerlines, causing a severe electric shock.
The subcontractor was installing angles near high-voltage powerlines when an explosion threw him backward. He caught fire, suffered burns to 30% of his body, spent three months in hospital, and has been unable to work since.
Judgement
In handing down the judgement, the Judge considered:
- The seriousness of the offence
- The extent of the injury suffered by the sub-contractor
- That WGA Pty Ltd:
- was aware of the risk
- was warned multiple times of the risk by authorities
- took no precautions to avoid a known risk
Warning Signs
SafeWork NSW Inspectors attended the site multiple times on advice from Ausgrid and Sydney Trains of the site’s unsafe work practices and issued WGA Pty Ltd with multiple improvement notices.
In the two days before the incident, Sydney Trains advised WGA Pty Ltd that a proposed isolation of power could not proceed and works could not yet commence.
WGA Pty Ltd pleaded with the sub-contractor to complete the job without notifying the sub-contractor of the risks or the advice from Sydney Trains to not proceed with works.
This was WGA’s first construction project, they had no previous building experience and the sole director ran a business so could not always be on site to supervise the work.
Reminder
As a business, we have obligations to ensure the safety for all our workers – including any sub-contractors that are engaged.
From recent changes to Work Health and Safety (WHS) laws – businesses, owners and directors have an increased liability and exposure to substantially higher penalties for WHS breaches.
If you need any assistance with directors’ liability insurance, WHS advice or support – please contact Ability Group.
Safe Work (NSW) v WGA Pty Ltd [2017] NSWDC 91 (10 April 2017)