What is a PCBU? The role of a PCBU Responsibilities of a PCBU

Many Australian businesses that have employment relationships with employees may call themselves an ‘employers’. However, you may have heard of a different term used in Work Health and Safety (WHS) legislation: PCBU.

PCBU stands for a ‘person conducting a business or undertaking’. It is a broad term used instead of ‘employer’ to better reflect modern workplace arrangements.

 

What is a PCBU?

PCBUs include sole traders, principal contractors, unincorporated associations, partnerships and franchisees. In addition, it covers those traditionally considered to be employers, self-employed people and volunteer organisations. PCBUs also include local government councils, universities, cooperatives and government departments and authorities.

The following are not PCBUs:

  • A person engaged solely as a worker or officer of the business or undertaking.

  • A volunteer association with a group of volunteers working together, but no person is employed to carry out work for the organisation.

The PCBU refers only to the business entity that is conducting the activities of the business or undertaking. It does not refer to employees employed by the entity.

The role of 'person conducting a business or undertaking' or employer 

A PCBU has a duty of care to ensure the health and safety of workers, so far as it is reasonably practical. In this case, ‘workers’ include employees, contractors and labour hire workers. PCBUs also have a duty of care to ‘others’ whose health and safety might be affected by the work carried out. This includes visitors, volunteers, clients, customers or anyone else who is present in the workplace. It may also extend to people in the neighbourhood or neighbouring premises. 

The PCBU employer responsibilities are to:

  • ensure the health and safety of workers and others is not put at risk as a result of the work being carried out

  • hold a current workers compensation policy covering employees

  • follow procedures for managing work-related injuries or illness

  • help injured workers return to their pre-injury duties as soon as possible.

In addition, if PCBUs are involved in specific kinds of activities, they have further obligations. These activities include the management and control of workplaces, fixtures, fittings or plant (machinery, equipment and appliances). The design, manufacture, import or supply of plant, substances or structures, and installation, construction and commissioning of plant or structures is also included.

PCBUs can be liable for the actions of a worker, which is known as ‘vicarious liability’. For example, an employer can be sued if the careless actions of an employee leads to the injury of another employee or a third person.

PCBU responsibilities are carried out by the CEO, line management, and HR management and staff. Specialists, supervisors and managers in Safety, Health and Environment or Risk Management also play a vital role in fulfilling PCBU responsibilities. If a PCBU does not have adequate resources or knowledge to meet their WHS responsibilities, external consultants can be brought in to help.

Responsibilities or 'person conducting a business or undertaking' or employer

According to the Work Health and Safety Act 2011, PCBUs have an obligation to protect the health and safety of their workers and others.

PCBU responsibilities under the WHS Act include the following:

  • Identify and control risks in the workplace, using the hierarchy of hazard control.

  • Provide and maintain a work environment without health and safety risks.

  • Provide and maintain safe plant, structures, and systems of work.

  • Ensure the use, handling and storage of plant, structures and substances is safe.

  • Provide workers with adequate facilities for welfare at work, and access to those facilities.

  • Monitor the conditions of the workplace and the health of workers, in order to prevent illness or injury as a result of work.

  • Protect workers and others from WHS risks through adequate training, information, instruction and supervision.

  • Have provisions for sufficient first-aid equipment and trained staff in the event of a WHS emergency.

  • Plan for the evacuation of all persons in the workplace if the need arises.

  • Obtain the relevant information to carry out WHS obligations, such as documentation for equipment or handling of chemicals.

  • Engage in consultations with workers, health and safety representatives and committees about work health and safety.

  • Consult, coordinate and cooperate with other PCBUs if there are shared duties.

It’s important to note this list isn’t exhaustive. PCBUs should take every reasonable and practical action to protect the health and safety of workers and others.

Finally, as part of their duty of care, PCBUs should create and maintain a good WHS culture. This ensures everyone is aware of their duties and responsibilities, from leaders to workers and visitors. 

Fostering a good WHS culture in the workplace starts with safety leadership from top management, and filters down throughout the organisation. PCBUs can take a number of actions to create and maintain strong safety leadership and culture. This could include regular trainings, as well as the engagement and review of WHS practices and procedures. 

 

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PCBU responsibilities for workers’ compensation

In addition to protecting the health and safety of workers, PCBUs need to meet their duties for workers’ compensation. 

Workers compensation is a statutory, no-fault system of compensation for work-related injuries. It covers medical expenses and rehabilitation costs, as well as wages for the time they are unable to work due to illness or injury. According to the State Insurance Regulatory Authority, most PCBUs in New South Wales need to have a workers’ compensation policy.

According to WHS legislation, PCBUs must have adequate workers’ compensation to cover employees and workers of their business. The type of policy will depend on the number of workers a PCBU has, their wages bill, and the industry the PCBU operates in. 

All workers should also have access to the relevant information on workers’ compensation, so they can properly access entitlements in the event of illness or injury. 

PCBUs need to develop a return to work program for injured workers, and support the rehabilitation process. Finally, PCBUs must treat workers’ compensation recipients in a fair and reasonable manner.

By understanding your duty of care as a PCBU, you can better meet your obligations for WHS legislation in Australia.