NSW considering imposing penalties for employers held accountable for worker fatalities

NSW Considering Imposing Penalties for Employers Held Accountable for Worker Fatalities

The NSW Government is currently exploring fines of up to $18 million and lengthy prison sentences for employers found responsible for industrial manslaughter. Under the proposed changes, employers in NSW now face potential imprisonment of up to five years alongside substantial financial penalties.

In a previous announcement, the government expressed its intention to establish an industrial manslaughter offence within the state's work health and safety framework.

What the Consultation Paper Proposes

These stringent measures are outlined in a consultation paper, as the government seeks input on the most effective means of implementing the new legislation and determining the specific elements of the offence.

By enacting industrial manslaughter legislation, businesses or employers may face liability for causing a worker's death through negligent or reckless conduct within the workplace. This shifts significant risk onto organisations that fail to manage safety obligations appropriately, similar to how Victorian employers faced $13.3 million in penalties for safety violations in 2024.

Why This Matters for Employers

Any workplace death carries serious consequences, both human and legal. Minister for Work Health and Safety Sophie Cotsis said, "Any workplace death is a tragedy and in cases where a person with a duty of care has been careless or irresponsible, they must be held accountable."

For technical professionals in construction, manufacturing and healthcare, this proposed legislation raises the stakes considerably. Employers liable under these new provisions could see their organisations exposed to maximum penalties well beyond current WHS fines, reinforcing why proactive safety management remains essential. A recent case involving a NSW logistics company fined for safety breaches that led to worker death demonstrates how existing penalties already carry significant weight, even before industrial manslaughter provisions take effect.

Managing Risk Ahead of Legislative Change

Organisations should treat this consultation period as an opportunity to review internal safety practices before new laws take hold. Reducing risk exposure now, rather than reacting once industrial manslaughter penalties become law, protects both employees and business continuity.

Practical steps toward safety improvement include:

• Reviewing current safety documentation and procedures against best practice standards
• Assessing risk factors specific to your industry, whether construction, manufacturing or healthcare settings
• Ensuring supervisors and managers understand their duty of care obligations
• Establishing clear reporting pathways for safety concerns raised by employees

Recent enforcement action, including calls for a 'safety first' approach mounting as an NSW farmer was fined over worker injury, shows regulators are already prioritising accountability well ahead of formal industrial manslaughter laws coming into force.

Strengthening Workplace Safety Documentation

Robust documentation forms the backbone of any defensible safety system. Businesses handling higher-risk operations, such as those following SOPs for equipment maintenance or SOPs for chemical handling and storage, should ensure procedures remain current and clearly communicated across all levels of the workforce.

More information on the government's consultation paper is available here.