Most SMEs consider the legal and financial requirements of contractors versus permanent employees, but what about health and safety? How far are contractors covered by the same Work Health and Safety (WHS) guidelines as your permanent staff? And what are your obligations if illness or an accident occurs?
Hiring a contractor can have advantages and disadvantages for your business, with your obligations to them differing from permanent employees. However, when it comes to WHS, you must ensure contractors are provided with the same level of protection as your other employees.
Induction
Contractors should be treated like a new employee in your business. This means educating them on how to use equipment, any hazards they might encounter in your workplace and what action should be taken if they see a hazard. For example, are they required to take action to fix or eliminate the hazard immediately, or should they inform a permanent employee in your business first?
For example, if contractors are operating machinery or equipment in your business, ensure they have been trained in its operation and can competently use it. Also check to see they have received any required licenses they might need to operate machinery.
Although contractors may have used the same piece of equipment in other workplaces, ensure they are supervised – both the first few times they use it and on an ongoing basis.
Incident notification
Contractors must notify you of any incidents that occur in your workplace. This includes accidents, injuries that might have been sustained or any damage to property in your business, such as to equipment.
Notification should be made as soon as possible.
Indemnity
Ensure any contractor you hire has Workers Compensation Insurance and/or Public Liability Insurance cover. Be sure to receive a copy of their Certificate of Insurance, or, Certificate of Currency, and check it is up to date before they carry out any work on your premises.
A Resilium Adviser can assist you with your insurance obligations when it comes to WHS for contractors. Find your closest Adviser here.
Non-compliance
You must ensure contractors are aware of the consequences of non-compliance with their WHS obligations.
Contractors should be given an opportunity to fix any non-compliant behavior and be given a warning – both verbally and in writing.
Failure to remedy their behaviour can have a big influence on your business, so you must be prepared to take swift action. For example, suspending their contract until they fix their behavior or terminating it completely for repeat offences.
Manuals
To give you complete peace of mind, you may wish to have contractors sign an WHS agreement that outlines their obligations in your workplace. This will ensure they acknowledge they have been educated about your business’s WHS policy.
It’s also a good idea to create a contractor’s manual that outlines their obligations, which they can refer to while they are in your workplace. You could consider stipulating the result of any non-compliance with their WHS obligations.
Contractors can play an integral role in the development of your business. Ensuring you provide a safe working environment for them will mean you adhere to your legal requirements and help the success of your business.
A key way to invest in the health of your workers is to make sure your business has a solid safety management plan in place.
