In Australian Work Health and Safety (WHS) legislation, the term PCBU is central to everything. It stands for Person Conducting a Business or Undertaking.
If you run a business, you are likely a PCBU. This classification carries significant legal responsibilities, and understanding them is the first step to avoiding prosecution and keeping your workforce safe.
Who is a PCBU?
The term "Person" in PCBU doesn't just mean a human being; it is a legal entity. A PCBU can be:
- A company (Pty Ltd).
- A sole trader or self-employed person.
- A partnership.
- A government department or authority.
- An association or school.
Essentially, if you are conducting any form of business or undertaking (whether for profit or not), you are a PCBU.
The Primary Duty of Care
The WHS Act states that a PCBU has the primary duty of care to ensure, so far as is reasonably practicable, the health and safety of:
- Workers engaged, or caused to be engaged by the person.
- Workers whose activities in carrying out work are influenced or directed by the person.
- Other persons (e.g., visitors, the public) who may be put at risk by the work.
This means you are responsible not just for your direct employees, but also for contractors, sub-contractors, and anyone else on your site.
What is "Due Diligence"?
Officers of the PCBU (e.g., Directors, CEOs) must exercise Due Diligence to ensure the PCBU complies with its duties. You cannot simply delegate safety to a manager and forget about it.
Due Diligence requires you to:
- Acquire and keep up-to-date knowledge of WHS matters.
- Understand the nature of your operations and the associated hazards.
- Ensure the PCBU has appropriate resources and processes to eliminate or minimise risks.
- Ensure the PCBU has processes for receiving and considering information regarding incidents and hazards.
- Verify that these resources and processes are actually being used.
"Reasonably Practicable"
The law does not expect miracles, but it does expect you to do what is reasonably practicable. This involves weighing up:
- The likelihood of the hazard occurring.
- The degree of harm that might result.
- What you know (or ought to know) about the hazard and risk.
- The availability and suitability of ways to eliminate or minimise the risk.
- The cost associated with available ways of eliminating or minimising the risk (though cost is rarely a valid excuse for safety failures).
Protect Your Business
Ignorance of the law is not a defence. As a PCBU, you must have a systematic approach to safety. Implementing a comprehensive WHS Management System is the best way to demonstrate that you are meeting your primary duty of care.
Looking for a complete framework? View WHS management systems and management plans.