NSW Firm and Director Penalised After Serious Falls From Height Incident

Coldline Refrigeration Management Pty Ltd and its sole director, Mr James Megalli, have been convicted and fined a total of $164,500 in the Industrial Court of New South Wales after a SafeWork NSW prosecution arising from a serious falls from height incident.

The case relates to an event on 25 October 2022, when five workers sustained significant injuries after falling approximately 3.6 metres. The workers were installing a compressor for an ice machine in the roof space above a cool room when the ceiling gave way, causing them to fall.

Coldline Refrigeration Management pleaded guilty to an offence under section 32 of the Work Health and Safety Act 2011 (WHS Act) for failing to comply with its primary duty of care to workers under section 19(1). The company also admitted a further offence under section 46 of the WHS Act for failing to consult, co‑operate and co‑ordinate activities with SFS Management Pty Ltd, which also had WHS responsibilities in relation to the installation work.

The Court imposed total fines of $152,500 on Coldline Refrigeration Management. The case underscores the importance of having a comprehensive WHS management system, supported by clear policies and documented procedures, particularly for high‑risk activities such as work at heights and tasks undertaken in ceiling or roof spaces. Businesses can strengthen their compliance by implementing formal WHS management systems and documented policies and procedures, such as those available from providers like BlueSafe.

Mr Megalli, the sole director at the time of the incident, pleaded guilty to an offence under section 32 of the WHS Act for failing to exercise due diligence as an officer, as required by section 27(1). He was fined $12,000. The judgment highlights that officers must actively verify that appropriate safe systems of work, including Safe Work Method Statements (SWMS) for high‑risk construction work, are in place and effectively implemented.

The Court’s written reasons for the decisions against Coldline Refrigeration Management and Mr Megalli have been published on the NSW Caselaw website, providing detailed guidance on how the WHS Act is applied in relation to falls from height and officer due diligence.

This matter follows an earlier conviction in October 2025, when SFS Management Pty Ltd was fined a total of $500,000 in the Industrial Court of NSW in relation to the same 25 October 2022 incident. SFS Management, which also employed workers involved in the work, pleaded guilty to two offences.

The first offence was under section 32 of the WHS Act for failing to comply with its health and safety duty to workers under section 19(1). The second offence was under section 46 for failing to consult, co‑operate and co‑ordinate activities with Coldline Refrigeration Management. These failures demonstrate the critical importance of coordinated WHS planning where multiple duty holders share a worksite or activity.

The offenders retain the right to appeal against their sentences.

Workers who have concerns about health and safety in their workplace can contact SafeWork NSW anonymously on 13 10 50 or via the Speak Up Save Lives online reporting tool. Early reporting of hazards, including unsafe work at heights, can prevent serious injuries and fatalities.

SafeWork NSW provides a range of guidance materials and tools to help businesses manage the risks of working at heights. Implementing task‑specific SWMS for high‑risk construction work, such as work in roof spaces and near fragile surfaces, is a key control measure. Industry‑ready SWMS templates tailored to high‑risk activities can assist businesses to meet their obligations and are available from specialist providers such as BlueSafe.

SafeWork NSW has reiterated that preventing falls from height is a regulatory priority. Falls remain a leading cause of traumatic injury and death in NSW workplaces, particularly in construction, maintenance, and installation work. The regulator has reminded all PCBUs and officers of their duty to ensure that effective risk management is in place whenever there is a potential for workers to fall, including the use of appropriate fall prevention, edge protection, safe access, structural assessments and formal WHS policies and procedures.

This case serves as a strong reminder that a systematic approach to WHS, supported by robust management systems, SWMS and genuine consultation between all duty holders, is essential to protecting workers and complying with the WHS Act.