The True Cost of Ineffective Workplace Safety Management

Ineffective Workplace Safety

With the recent introduction of new workplace health and safety legislation in Western Australia, we thought it would be good to discuss the true cost of ineffective safety management.

For many, health and safety compliance is difficult to understand. There are just too many clauses to be aware of, and so many elements to keep track of. It all adds up to an extra effort that they don’t have time for – even though the penalties for not complying are extreme.

When we look at the costs of ineffective safety management, there are direct costs and indirect (or hidden) costs.

Direct costs include things like fines, compensation, sick leave pay, or other legal costs as a result of a workplace safety incident. 

Indirect (or hidden) costs include longer-term impact things like project delays, equipment damage, incident inquisition, loss of reputation, loss of skilled workers, and a loss of time and resources.

WHS Act (WA) 2020 Penalties for Ineffective Workplace Safety

The Work Health and Safety Act (WA) 2020 (‘WHS Act’) was introduced to replace its legislative predecessor, the Occupational Health and Safety Act 1984. The WHS Act aims to better protect West Australian workers by imposing broader responsibilities and tougher penalties on the various types of employers.

Division 5 of the WHS outlines the potential maximum penalties that can be incurred as a result of non-compliance. See the table below for an overview of the different categories of non-compliances and potential penalties.