What is a PCBU?
What is a PCBU?
PCBU stands for person conducting business or undertaking. The PCBU is normally the business owner or company, but can also be government departments, NGOs or volunteer associations. A PCBU may be a person, or an entity. For example, a proprietary limited (Pty Ltd) company is generally considered a PCBU.
In previous legislation, the term “employer” was used. In the new harmonized WHS legislation, “employer” was replaced with “PCBU”. Although very similar, PCBU is a broader term that includes relationships that may not be as simple as employer / employee.
For example, a company that engages labour-hire workers, volunteers or subcontractors will likely not be considered the worker’s “employer”. If the legislation stated that the “employer” was responsible for the safety of workers, this would leave a legislative loophole where these companies were not explicitly responsible for the worker’s safety. You can see the problem, right?
The term “employee” was replaced with “worker” for similar reasons. Worker is a broader term that covers more relationships.
PCBU and Workers Examples
Examples of workers:
- Employees
- Labor hire workers
- Work experience trainees
- Volunteers
- Subcontractors
Examples of PCBUs:
- The owner of a business
- A not-for-profit organization
- The people who own a partnership
- A self-employed person
- A corporation (e.g. McDonalds or Coca-Cola) – these organizations gain the legal status as a “person” once they become a company
- A government department (e.g. Education Queensland)
What is a PCBU in the Legislation?
For what its worth, we’ll paste the legal definition of a PCBU here (from the WHS Act):
Meaning of person conducting a business or undertaking:
- For the purposes of this Act, a person conducts a business or undertaking:
- whether the person conducts the business or undertaking alone or with others, and
- whether or not the business or undertaking is conducted for profit or gain.
- A business or undertaking conducted by a person includes a business or undertaking conducted by a partnership or an unincorporated association.
- If a business or undertaking is conducted by a partnership (other than an incorporated partnership), a reference in this Act to a person conducting the business or undertaking is to be read as a reference to each partner in the partnership.
- A person does not conduct a business or undertaking to the extent that the person is engaged solely as a worker in, or as an officer of, that business or undertaking.
- An elected member of a local authority does not in that capacity conduct a business or undertaking.
- The regulations may specify the circumstances in which a person may be taken not to be a person who conducts a business or undertaking for the purposes of this Act or any provision of this Act.
- A volunteer association does not conduct a business or undertaking for the purposes of this Act.
- In this section, volunteer association means a group of volunteers working together for 1 or more community purposes where none of the volunteers, whether alone or jointly with any other volunteers, employs any person to carry out work for the volunteer association.
If you struggle to understand that legal mumbo jumbo, that’s ok!
What is NOT a PCBU?
A person is not considered PCBU if that person is solely a worker completing work – unless that person is a sole-proprietor.
For example, the manager, the supervisor and all the workers on a construction site are not considered PCBUs. However, the person who owns the construction company IS a PCBU.
FAQs
What is a PCBU?
A PCBU stands for Person Conducting a Business or Undertaking. It is a legal term used in workplace health and safety laws to describe an entity that operates a business or undertaking, whether alone or with others, and regardless of whether it is for profit or not.
Who can be considered a PCBU?
A PCBU can be an individual (such as a sole trader), a company, a partnership, an unincorporated association, or a government department. Essentially, any entity that conducts business activities can be considered a PCBU.
What is the primary duty of care?
A PCBU has several key duties, including:
- Ensuring the health and safety of workers and others who may be affected by the work.
- Providing and maintaining a safe work environment.
- Ensuring safe systems of work.
- Providing adequate facilities for the welfare of workers.
- Ensuring the safe use, handling, and storage of plant, structures, and substances.
- Providing information, training, instruction, and supervision to ensure health and safety.
Are there any specific obligations for PCBUs regarding worker consultation?
Yes, PCBUs must consult with workers on health and safety matters. This includes sharing information about health and safety, giving workers a reasonable opportunity to express their views, and taking those views into account.
What are the penalties for failing to comply with PCBU duties?
Penalties for non-compliance can be severe and may include fines and, in some cases, imprisonment. The exact penalties depend on the nature and severity of the breach and the jurisdiction’s specific laws.
How can a PCBU ensure compliance with health and safety laws?
To ensure compliance, a PCBU should:
- Regularly review and update health and safety policies and procedures.
- Conduct risk assessments and implement control measures.
- Provide ongoing training and education for workers.
- Engage in regular consultation with workers and health and safety representatives.
- Monitor and review health and safety performance.
Can a PCBU delegate their health and safety duties?
While a PCBU can delegate tasks to others, they cannot delegate their overall responsibility for health and safety. The PCBU remains accountable for ensuring that health and safety duties are met.
Did You Know?
Did you know that Queensland, Australia, had its first industrial manslaughter sentence in 2020? In a landmark case, the defedant was prosecuted as a Person Conducting a Business or Undertaking (PCBU) for the death of a worker at their auto recycling yard. The company was fined $3 million, and its directors were sentenced to 10 months imprisonment (suspended) for reckless conduct.
This case highlighted the critical importance of workplace safety and the severe consequences of neglecting health and safety duties. It set a precedent for how PCBUs are held accountable under the Work Health and Safety Act 2011 (QLD), emphasizing the need for robust safety systems and procedures in the workplace.
Articles and Further Reading
- What is a WHSMS? (Spire Safety) <https://spiresafety.com.au/resources/what-is-a-whsms/>
- Duties of a PCBU (Safe Work Australia) <https://www.safeworkaustralia.gov.au/law-and-regulation/duties-under-whs-laws/duties-pcbu>