- New Jan 2012 laws increase risk of litigation for Directors & Managers
- Risk Management a key focus for venues
- Be prepared; Download the draft 10 new Codes of Practice
Hospitality venues are a target for new Risk Management regulations that are due to come in on January 1st 2012. These new intergovernmental Acts and Regulations or “Harm Minimisation” will play a key role in all businesses across Australia. Read more to download the draft.
Hospitality venues can start getting prepared for the changes as Safe Work Australia has released the draft Act and Regulation and is now available for download, outlining the 10 new Codes of Practice >>> Draft – Hazardous Manual Tasks – Safe Work Australia
These new regulations will mean that Directors and Senior Managers of hospitality venues will be most at risk and will need to exercise due diligence as it opens the door for increased litigation. A Director or Manager can be found guilty of an offence, regardless of whether the organisation has been found guilty.
Categories of Offence
There will be 3 Categories of Offence; Category 1, Category 2 and Category 3.
Breaches of the new regulations will range from $500,000 fines up to 5 years jail. There will also be larger on-the-spot fines for venues as the new Laws are more user friendly in the wording and focus on the likelihood of a hazard (risk) and the degree of harm that might result. If the risk is foreseeable, venues will be required to manage a process of eliminating or minimising the risk.
Risky Mistakes: 3 Case Studies
We only have to look to the media in the past month or so, to see how easy it is to expose yourself to risk in our industry, no matter what size your venue is.
Some of the latest examples include:
A small business had a blocked drain in the kitchen and staff attempted to unblock it with hot water. When this failed, they purchased a Caustic Soda product and poured down the drain. The Caustic Soda reacted with the hot water and other chemicals in the drain, which caused a chemical reaction.
The result was vapour burns to the throat and second degree burns to the face of two employees.
A large corporation failed to secure internal CCTV footage from being downloaded by unauthorised staff members. A disgruntled employee of the organisation extracted the video footage and posted to online sharing community YouTube.
The result was extensive negative National media coverage, police involvement, possible breaches of the Privacy Act,
potential compensations and damaged corporate reputation in the community.
Times are tough and in the last month, the industry has seen small to large venues exposed to both internal and external robbery. Examples include; an employee arranging an external robbery with her partner, armed hold-up and snatch and grab at change counters and TAB Draws.
Venues are responsible for establishing protocols to manage the exposure to risk for staff. The industry cash and security control must be reviewed and evaluated, as well as actively embedding a risk-aware working culture. Countless times, we have been allowed to walk into normally secure areas of a premises because Staff have simply trusted us and told us to go in.
Risk Management ISO: 31000 will become part of Hospitality venue’s Strategic Planning and Budgeting for Directors and Management to meet their risk management obligations and reduce their exposure to:
- Civil Action
- Breaches of legislation and prosecution
- Damage to Corporate Reputation
- Staff Incidents
- On-the-spot Fines
Dickson Wohlsen Strategies (DWS) can assist you to ensure your venue manages its Risk obligations. Our internal Workplace, Health and Safety Consultant Danny Hickey specialises in the development of Risk Management plans and workplace safety audits.
Contact us today on (07) 3878 9355 or email@example.com to see how we can assist you.