The Unthinkable: Why Workplace Safety Matters Most For Small Business

The phone rings, shattering your morning coffee break. News you never want to hear pierces through: your employee has been killed on the job. This chilling call, unfortunately, is the reality for too many businesses. In 2022 alone, 195 businesses faced the agonizing task of notifying a loved one of their worst nightmare.

For larger corporations, tragedy triggers a well-oiled machine. Teams of lawyers, investigators, and PR professionals swoop in, shielding executives from the emotional brunt and managing the "fallout." But for small to medium size businesses, this crushing weight lands squarely on the shoulders of the owner, or perhaps a handful of dedicated managers.

The financial and reputational impact is immediate. WorkSafe shutters operations, equipment becomes evidence, and days vanish in investigation. Legal fees mount, contracts hang in the balance, and payroll continues despite production grinding to a halt. Employees grieve, fear lingers, and questions hang heavy in the air – all while the owner wears the invisible cloak of responsibility.

This isn't just a temporary storm; it's a legal maelstrom threatening to engulf your business. Fines reaching millions, enforceable undertakings, and even personal jail time loom under the Model WHS laws. If Worksafe find you negligent or reckless, it can have devastating consequences, not just for the business, but for the very person who built it with their own hands. Imagine Worksafe pins your employee's death on recklessness. Under soon to be implemented Model WHS amendments, your business could face a staggering $10.4 million penalty, a potential financial death knell. As an officer, you could be liable for up to $2.1 million personally, draining your life savings and jeopardizing your family’s future. Beyond the financial blow, industrial manslaughter charges carry the weight of 20 years in prison. This isn't just a temporary setback; it's a potential life sentence, stripping you of your freedom and everything you've built.

This isn't meant to scare you; it's meant to empower you. By prioritising safety and implementing documented risk management systems, you minimize these risks and ensure your business thrives alongside your employees' well-being. These proactive measures prove your commitment to employee safety and act as a shield against the harshest of penalties.

While we've outlined the most severe potential consequences, let's look at the more typical scenario. These extreme penalties are not typical in WHS prosecutions, in fact according to Safe Work Australia data, only 2% of prosecutions between 2020 and 2022 fell into this category. More commonly over this period, WHS prosecutions lead to an average financial penalty of $120,000. This does not include:
- The legal costs associated with their defence
- The cost of any enforceable undertaking imposed upon them
How would your business fare if you were fined $120,000 and had to fork out potentially tens of thousands in legal fees?

Importantly, the data also tells us something else. A worker does not need to be seriously injured or killed for a business to be prosecuted. Over the 2020 to 2022 period, 22% of prosecutions involved no or only minor injuries. You don’t have to hurt someone to be in the firing line.

Remember, the financial burdens pale in comparison to the emotional and ethical weight of injuring your people. Simple, and effective safety measures can offer solace, knowing you did everything possible to create a safe environment for your team. Investing in safety isn't about ticking boxes; it's about protecting your people, your livelihood, and your peace of mind. It's about ensuring everyone goes home safe at the end of the day, including you.

If you're unsure where to start, there’s plenty of resources available through your state WHS regulator, Safe Work Australia as well as industry associations. In addition, reaching out to a specialist WHS service, such as Safety Made Simple, can help you quickly and impactfully manage your personal and business risk.

Sources:
Prosecution data: https://data.safeworkaustralia.gov.au/interactive-data/topic/whs-prosecutions
Upcoming Model WHS Legislation amendments (penalties): https://www.safeworkaustralia.gov.au/doc/model-work-health-and-safety-legislation-amendment-offences-and-penalties-2023