Thanks to Gary Wilcox from WHS compliance system MONIT for this article.
In recent years, the use of Australian Standards (AS/NZS****) has been widely assumed to signify compliance with workplace health and safety (WHS) laws in Australia. However, it is important to question the validity of this assumption and examine the historical context behind these standards. This article sheds light on the disconnect between Australian Standards and legal obligations, as well as the need for industry leaders to address the burden placed on panel shops due to insurers' insistence on these standards.
The Role of Australian Standards
Australian Standards were initially introduced in 1922 by Standards Australia, a non-government, not-for-profit organisation, with the aim of raising awareness and improving business operations. While they began with a focus on weights and measures, they eventually expanded to encompass various corporate governance requirements.
The Disconnect with WHS Laws
Safe Work Australia, the governing body responsible for WHS regulation in Australia, explicitly states that conformity to Australian Standards is not a legal requirement. In a press release, they emphasised that standards are not laws and that compliance with WHS laws is the primary obligation for businesses. While WHS laws outline mandatory requirements, adherence to specific standards beyond these legal obligations is not mandated.
Evolution of Standards Australia
Over time, the landscape surrounding Australian Standards has undergone significant changes. In 1999, Standards Australia transitioned into Standards Australia International Limited (SAI Limited), an Australian public company limited by guarantee. Subsequently, in 2003, SAI Limited sold its commercial assurance business and granted an exclusive license to publish and distribute Australian Standard® brand standards to SAI Global Limited, a newly founded company listed on the Australian Stock Exchange. This shift marked a transition from a non-profit organisation to a commercial entity.
Review of WHS Laws and Standards
In 2017, Marie Boland, former Executive Director of SafeWork SA, was appointed to review Australia's model Work Health and Safety laws. Boland's review led to the amendment of two clauses in WHS laws. Firstly, references to standards were removed, emphasising that compliance with standards is not mandatory. Secondly, regulation 15 ('reference to Standards') was amended to clarify the non-binding nature of standards.
Insurer Recommendations and Industry Response
Despite the clarifications made by the governing WHS body, insurance companies continue to recommend Australian Standards in contracts with panel shops. However, if the requirement to use a specific WHS product contradicts applicable laws or regulations, such a provision may be unenforceable or potentially invalid. The panel industry, burdened by the imposition of these standards, calls for industry leaders to take action and protect them from this misguided application.
