Employers welcome transition arrangements for OH&S harmonisation as Victoria and WA drag the chain

Peak employer group the Australian Industry Group has welcomed transition arrangements for businesses adapting to harmonised occupational health and safety rules, as the Government announces a grace period of up 12 months for businesses which will need to “significantly change” their practices to comply with the new laws.

AIG says the transitional arrangements “recognise the importance of harmonisation but also the impact it will have on business”.

“It is our understanding that each jurisdiction will determine which regulations these transitional arrangements should be applied to and include these provisions in their respective regulation,” AIG chief executive Heather Ridout says.

“We believe these arrangements will allow companies to implement these important laws in a logical and practical way.”

Workplace Relations Minister Chris Evans says the development of “sensible transitional arrangements are part and parcel of any new laws.”

But his office has yet to say who will be entitled to take advantage of the transitional arrangements and what qualifies as “significant change” for a business affected by the new laws.

The new laws will mean that:

• Prosecutors will need to prove the employer did not take all reasonably practicable measures to prevent the risk to health and safety from taking place, reversing the onus of proof from the previous OH&S Act.
• Officers of a corporation will also be required to exercise due diligence to ensure the organisation complies with OH&S responsibilities, which is already in place in New South Wales.
• Companies will have broader obligations to consult with people performing work, including contractors.

The Government says that harmonisation has the potential to deliver up to $2 billion per annum in productivity improvements in addition to a national benefit of $250 million per annum by cutting red tape for businesses.

The new laws are set to be introduced in most states at the start of 2012, but Victoria and Western Australia have not introduced the relevant legislation, complaining of information delays from the Federal Government this year and flagging they were unlikely to be prepared for harmonisation until the year after.

But the Workplace Relations Minister warns there might be a financial impost for WA and Victoria if they do not meet the 2012 timetable, with Victoria in particularly eligible for more than $111 million in Federal Government funding.

“Reward payments should certainly be a consideration for the states and territories, especially since some have already factored them into their budget forward estimates,” Senator Evans said.

“With two months until the COAG deadline it appears that Victoria and WA will be left with outmoded safety regulations which don’t meet the needs of a dynamic 21st century economy and labour market.”

The Australian Council of Trade Unions has criticised the WA Government by refusing to sign to the laws, with president Ged Kearnery saying the decision is “risking workers’ lives”.