Lockton Australia has drawn attention to the critical importance of work health and safety (WHS) compliance in property ownership and facility management, following a recent legal case in New South Wales.
The case involved significant penalties for breaches of WHS laws, underscoring the legal and financial risks faced by businesses in the property sector.
The 2020 incident occurred at an industrial complex where a gate, damaged by a van, fell eight days later and killed a worker.
As a result, three parties – a property owners corporation, the strata manager, and an employer operating on the premises – were prosecuted under the Work Health and Safety Act 2011 (NSW) (WHS Act) and collectively fined $750,000.
Notably, NSW law prohibits insurance coverage for WHS-related fines, making compliance even more crucial.
Lockton Australia said the case demonstrated the shared duty of WHS compliance among property owners and facility managers, even when day-to-day operations are not their direct responsibility.
The brokerage giant emphasised that clear agreements between property owners and managers about their WHS roles are essential for effective risk management and avoiding liability.
Any safety risks identified should be addressed immediately, according to Lockton Australia.
Temporary solutions, such as restricting access, can be useful until permanent repairs are completed.
Temporary fixes should not replace comprehensive solutions to resolve safety risks. Property managers must ensure timely and lasting repairs to prevent further incidents, said Lockton Australia.
The insurance brokerage giant recommended that property owners establish rigorous WHS assurance programs to verify that facility managers, whether internal or external, are meeting their safety obligations.
Regular audits and inspections are vital to maintaining WHS compliance and should be tailored to the size and risk profile of the property.
An effective WHS assurance program should include:
If gaps are identified in WHS compliance, corrective action plans should be developed, according to Lockton Australia.
Additionally, property owners should ensure regular WHS reporting from facility managers to monitor ongoing safety performance and compliance with agreed-upon WHS protocols.
In addition to its WHS focus, Lockton Australia has been calling for a more strategic approach to employee wellbeing in businesses across industries.
A report from the company suggested that businesses should adopt data-driven strategies tailored to the evolving needs of their workforce, particularly in the post-pandemic environment.
The report recommends that companies use data analytics to design wellbeing initiatives that address the root causes of employee dissatisfaction. Additionally, it encourages closer collaboration between HR and finance teams to secure funding and ensure wellbeing programs align with business objectives.
