Unprepared directors face jail under model safety laws; and more

Unprepared directors face jail under model safety laws

Company directors and other officers could face up to five years in jail for safety failures under model OHS laws, regardless of whether their company has committed a breach, a Norton Rose Lawyers report warns.

And employers, it says, should be auditing their processes and preparing officers now.

"Officers may currently be liable for offences committed by the corporation that are attributable to a failure of the officer to meet a relevant standard [such as] due diligence or reasonable care," the report says.

"Under the model Act, officers may be liable even in the absence of a breach by the company [if they fail] to exercise due diligence to ensure compliance by the corporation."

According to the report, the Commonwealth Work Health and Safety Act, which is due to take effect in January 2012, defines an "officer" as a person who makes, or participates in making, decisions that affect the whole or a substantial part of the business (as found in s9 of the Corporations Act).

The Act will require officers to take "positive steps" to ensure businesses comply with their OHS obligations, it says, and penalties for failing to do so - at a maximum $600,000 and/or five years' jail - will be "significantly higher" than under current regimes.