After violating safety regulations that led to the death of an employee, a cardboard recycling company was put into voluntary administration by its operators in an attempt to avoid paying the criminal penalties of $800,000 handed down by a County Court.
After realising that legal costs and penalties would not be covered by their insurance, the manager of AB Recycling, Leandro Guisasola set up a new company, High Heat and listed AB Recycling as its sole shareholder.
Despite the attempt by the company to deregister itself to avoid paying the penalties, Worksafe managed to apply to the Supreme Court for AB’s re-registration meaning that the legal proceedings against AB could continue.
While it sounds like an ‘easy-fix’ to avoid paying harsh penalties imposed by courts, it would appear that the company had been ill-advised as to the risks of completing the transfer of business. The process undertaken by AB is fraught with risk, namely, leaving the directors of the company openly liable for breach of the Corporations Act 2001 (Cth). Given the transfer of business was done with the intention of avoiding creditors, there is a risk that High Heat be ordered to pay the debts of AB Recycling.
Understand your WHS obligations to avoid breaches of the law
Fulfilling your WHS obligations is hard if you don’t have the right processes and systems in place. To avoid ending up in a situation likened to AB Recycling, and being responsible for the death of an employee due to deadly defects in operating equipment, you need to have the right tool for WHS management.
This is where we can help you.
HRA Cloud, our cloud based HRIS (Human Resources Information System), comes built with the following features to help you manage your WHS obligations:
- Hazard Management: this tool allows for the tracking and recording of individual hazards identified within the workplace. Alerts and reminders are able to be sent to engage key stakeholders to ensure hazards are identified and rectified.
- Incident and Action Management: You are able to record emergency, first aid and ‘near miss’ incidents and accidents using the integrated workflows and checklists. The system guides you through the critical steps when managing an incident or accident as well as providing you with template documents and guides.
- Consultation Requirements: As the model WHS legislation introduces stringent consultations requirements for workers under your care, the HRIS guides you through the key steps in consultation including recording actions, notes, outcomes and reminders electronically.
For more information on WHS obligations and what this means for you, clients should contact the HR Assured team. If you’d like more information about the benefits of becoming an HR Assured client contact us today for a free initial consultation.