PCBU responsibilities form the cornerstone of Australia’s workplace health and safety framework, but the term itself often raises many questions, especially given the legal ramifications for noncompliance!

What is a PCBU?
Is it really a person?
What is an “undertaking”?

These are common questions that get asked, and with good reason.  Unfortunately, the term “Person Conducting a Business or Undertaking” can inherently be quite misleading.

This article helps address these questions.

Hopefully in a clear and informative manner, but warning – we do have to climb into some legal terminology to understand things better!

Understanding the responsibilities of a PCBU  is essential for creating safe work environments and ensuring compliance with current legislation.

Whether you’re a small business owner, corporate executive, public sector manager, or responsible for a church, club, or an association, knowing your obligations as a PCBU helps protect your workers and your organisation, as well as the responsible leaders of the organisation.

Effective management of work health and safety delivers numerous benefits beyond mere compliance. Organisations that implement robust safety systems typically experience reduced incident rates, improved staff morale, enhanced productivity, and stronger reputational standing.

By embracing PCBU responsibilities as an opportunity rather than a burden, businesses can create positive workplace cultures where safety becomes integrated into everyday operations.

What is a PCBU Under Work Health and Safety Laws

The term ‘Person Conducting a Business or Undertaking’ (PCBU) was introduced as part of the harmonised work health and safety legislation across Australia. This terminology represents a significant shift from the traditional ’employer’ concept to a broader category that encompasses various business arrangements.

A PCBU refers to any person or entity conducting a business or undertaking, whether alone or with others, and whether for profit or not. This definition, as previously mentioned can be problematic, particularly because of its use of the word “person”! 

When you read the list below, as outlined in the Work Health and Safety (WHS) Act 2011, you’ll see that whilst it creates a wide net of responsibility that extends beyond conventional employment relationships – it also includes mostly “entities” that cannot be defined as a person.

Hence the confusion.

Here’s the list the WHS Act applies as PCBU’s  including:

• Companies and corporations
• Sole traders and self-employed persons
• Partners in partnerships
• Government departments and public authorities
• Local councils and municipal corporations
• Schools and educational institutions
• Churches
• Clubs and some associations
• Entities that include the Commonwealth

However, the WHS Act specifically excludes volunteer associations that don’t employ anyone, elected members of local authorities acting in that capacity, and workers or officers when acting in those capacities.

The concept recognises that modern work arrangements often involve complex structures where multiple parties may influence workplace safety.

The term PCBU relates to the conduct of the business rather than simply the employment relationship, acknowledging that safety responsibilities extend to all who have the capacity to influence how work is performed.

Now this leads us to consider another very important concept that is central to a proper understanding of PCBU.  And that is “primary duty”.

Primary Duty of Care

The WHS Act establishes a primary duty of care at the core of PCBU responsibilities.

This obligation requires PCBUs to proactively manage workplace hazards and risks, ensuring the protection of workers and others through appropriate control measures. And this in itself can cause confusion as to who is actually responsible?

The Primary Duty of Care, rests with the PCBU, but where that is an entity (ie, most cases), the actual responsibility falls primarily on the person and/or people who exercise (the most) control over that entity.  So this in most cases would be the Board, (and Chairman), Executive (especially the CEO and the corporate Secretary) or the Managing Director.

In clubs, schools, or certain associations, it would be the “responsible officer” who is usually the most senior position within the organisation.

However, in the case, for example of a corporation, that does not mean the the CEO is the PCBU.  He or she is not.  They are simply the responsible officer for that corporation, which itself is a PCBU.

SafeworkAustralia has some more comprehensive useful information on this important topic https://www.safeworkaustralia.gov.au/law-and-regulation/duties-under-whs-laws/officer-duties and this video is also useful: https://youtu.be/vw4CF_WVVoQ.

PCBU duty to ensure health and safety of workers

The primary duty of care mandates that a PCBU must ensure the health and safety of workers engaged by the PCBU or whose activities in carrying out work are influenced or directed by the PCBU.

Importantly, this duty encompasses both physical and psychological health, requiring PCBUs to address all workplace hazards that could potentially cause harm, either physical or psychological in nature.

The obligation extends beyond traditional employees to include contractors, subcontractors, apprentices, volunteers and others performing work in the business.

To fulfil this primary duty of care, a PCBU must:

• Provide and maintain a safe work environment
• Ensure safe systems of work
• Provide for the safe use, handling and storage of plant, structures and substances
• Ensure adequate facilities for the welfare of workers
• Provide necessary information, training, instruction and supervision
• Monitor workers’ health and workplace conditions to prevent illness or injury

The duty also extends to others who may be affected by the work carried out as part of the business or undertaking.

PCBUs must ensure these individuals are not exposed to hazards that could lead to health and safety risks arising from the conduct of the business or undertaking.

“So far as is reasonably practicable” explained

Remember earlier we mentioned that there would be some legal references in this article in order to fully understand the concepts behind PCBU?  Well, here’s an important one.

The phrase “so far as is reasonably practicable” is a “legal test” that can be applied, and thus is crucial to understanding the extent of PCBU obligations. This qualification recognises that while the duty to ensure safety is absolute, the measures required to achieve this must be reasonable in the circumstances.

To determine what is reasonably practicable, the WHS Act requires PCBUs to consider:

• The likelihood of the hazard or risk occurring
• The degree of harm that might result
• What the PCBU knows, or ought reasonably to know, about the hazard or risk and ways of eliminating or minimising it
• The availability and suitability of ways to eliminate or minimise the risk
• The cost of available ways of eliminating or minimising the risk, including whether the cost is grossly disproportionate to the risk

These considerations are assessed using what’s known as a risk matrix, such as the one in the diagram below. 

The risk matrix assesses the “consequences” of the risk (from Insignificant to Catastrophic”) on the X axis, and the “likelihood” of the risk actually happening, (from Rare to Almost Certain) on the Y axis. 

Determining where any given identified risk sits on the risk matrix helps a PCBU decide on priorities of action and implementation.

https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/identify-assess-and-control-hazards/managing-risks and recommends PCBU’s utilise the cyclical process demonstrated in the below diagram:

It does not permit PCBUs to simply choose the cheapest or easiest option if more effective control measures are reasonably available.

Risk Management should employ a hierarchy of control mechanisms as demonstrated in this diagram and outlined more by Safe Work Australia here: https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/identify-assess-and-control-hazards/managing-risks.

Image attribution: www.safeworkaustralia.gov.au

Key PCBU Responsibilities

The WHS Act and WHS Regulations outline specific responsibilities that PCBUs must fulfil to meet their primary duty of care. These obligations encompass a range of practical requirements from maintaining safe workplaces to engaging in meaningful consultation with workers.

Understanding these key responsibilities helps PCBUs implement effective systems and processes to manage workplace health and safety risks.

Risk management forms a central part of PCBU responsibilities. This process involves:

• Identifying hazards and risks in the workplace
• Assessing the likelihood and severity of potential harm
• Implementing control measures to eliminate risks where possible, or minimise them when elimination is not reasonably practicable
• Regularly reviewing and improving control measures

When implementing control measures, PCBUs must follow the hierarchy of controls, prioritising elimination of risks before considering other measures such as substitution, engineering controls, administrative controls, and personal protective equipment.

PCBUs must also ensure the provision of adequate facilities for workers, including toilets, drinking water, washing and dining areas. For accommodation owned or under their management and control, PCBUs have additional responsibilities to ensure these facilities are safe and adequate.

Consultation requirements with workers and other PCBUs

Work health and safety consultation is a legal requirement for all PCBUs. Under the Work Health and Safety Act 2011, PCBUs must consult with workers on matters that directly affect their health and safety.

This includes:

• Identifying hazards and assessing risks
• Making decisions about ways of eliminating or minimising risks
• Making decisions about facilities for workers’ welfare
• Proposing changes that may affect health and safety
• Developing health and safety policies and procedures

Effective consultation involves sharing relevant information with workers, giving them reasonable opportunity to express views, taking those views into account in the decision-making process, and advising workers of the outcome.

The WHS Act also provides for the election of health and safety representatives and the establishment of health and safety committees to facilitate consultation. PCBUs must facilitate these arrangements when requested by workers.

When multiple PCBUs are involved in work at the same location or as part of the same project, they have a duty to cooperate and coordinate activities with each other in relation to the same matter.

This requirement recognises that modern working arrangements often include PCBUs involved in complex structures, each with their own WHS responsibilities. This approach helps prevent injury or illness in shared workplaces.

PCBU Training and Compliance Solutions

Our comprehensive PCBU Responsibilities Online Training course delivers clear, practical guidance on managing workplace safety responsibilities under the WHS regulations and legislations.

Our expert team of workplace safety specialists brings years of industry experience to help you navigate your duty of care to ensure compliance with all aspects of Work Health and Safety laws.

Contact us to learn how our PCBU training solutions can help you create a workplace where the health of workers become embedded in everyday operations, driving both compliance and business success.