Navigating Changes in Australian Workplace Health & Safety Laws, What Directors Need to Know
TYRON MCGURGAN | Mar 14, 2025
In Australia, workplace health and safety (WHS) laws are evolving, placing greater responsibilities on company directors and board members. With a renewed focus on accountability, directors must ensure they exercise due diligence to avoid severe penalties and reputational damage.
The Changing Landscape of WHS Laws
Recent amendments to WHS laws in various states and territories have introduced harsher penalties, expanded liability, and increased regulatory scrutiny. The growing emphasis on industrial manslaughter laws underscores the importance of proactive compliance and risk management at the highest levels of leadership.
Key changes include
- Stronger Industrial Manslaughter Penalties – Several states, including Queensland, Victoria, Western Australia, and the ACT, have introduced industrial manslaughter laws, with penalties reaching up to 20 years in prison for individuals and multi million dollar fines for companies.
- Increased Personal Liability for Directors – WHS regulators are actively holding directors personally accountable for workplace safety failures, emphasising their obligation to exercise due diligence.
- Expanded Regulatory Oversight – Safe Work Australia and state-based regulators are intensifying inspections, audits, and enforcement actions, making it crucial for boards to be actively engaged in WHS governance.
Directors’ Due Diligence, What’s Now Expected From Them?
Under WHS legislation, company directors have a legal duty to exercise due diligence in ensuring their organisations comply with safety obligations. This means directors must:
- Stay Informed – Understand the latest WHS laws, risks, and best practices relevant to their industry.
- Ensure Proper Risk Management – Proactively assess workplace hazards and ensure robust safety policies and procedures are in place.
- Allocate Adequate Resources – Provide sufficient funding and personnel to implement and maintain effective WHS systems.
- Monitor Safety Performance – Regularly review incident reports, conduct safety audits, and take corrective action when necessary.
- Lead a Safety Culture – Demonstrate commitment to workplace safety from the top down, fostering a culture where employees feel empowered to report hazards.
The Consequences of Non Compliance
Failing to meet WHS due diligence obligations can result in severe consequences, including:
- Criminal Charges – Directors can face personal prosecution, including imprisonment under industrial manslaughter laws.
- Financial Penalties – Companies and individuals may be fined millions of dollars for WHS breaches.
- Reputational Damage – Workplace safety failures can erode stakeholder confidence and impact business operations.
Proactive Steps for Directors and Boards
To mitigate risks and ensure compliance, Safety Sphere Australia’s only Industry advocacy body that supports executives, boards and WHS leaders in driving greater WHS outcomes provides it’s members with tools to support their business in mitigating risk and ensuring compliance, some of these include
- Engage in WHS Governance Training – Regular training ensures directors are up to date with their legal obligations and emerging risks.
- Review WHS Policies Regularly – Conduct periodic audits and updates to safety policies to align with legislative changes.
- Establish Clear Accountability – Assign specific safety responsibilities to executives and ensure proper oversight mechanisms are in place.
- Benchmark across industry through data driven Benchmarking– Engage Safety Sphere analysts to assess risks and recommend improvements.
With WHS laws in Australia becoming increasingly stringent, directors sitting on boards cannot afford to take a passive approach. Ensuring due diligence in workplace health and safety is not just a legal requirement, it’s a fundamental responsibility that protects workers, the organisation, and the directors themselves.
By becoming a member of Safety Sphere your company will be part of an industry network focused solely on achieving WHS excellence. Through our national surveys and benchmarking, Safety Sphere enables companies to validate their upcoming WHS initiatives from 100s of similar companies across industry, enabling boards to make quicker data backed and supported decisions for future WHS success.