What does "due diligence" mean for company officers?
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Why psychosocial hazards now sit squarely inside officer due diligence
Under the Work Health and Safety Act 2011 (Qld) (WHS Act) and equivalent model WHS legislation, officers of a Person Conducting a Business or Undertaking (PCBU) have a personal duty under section 27 to exercise due diligence to ensure the PCBU complies with its WHS obligations.
This duty is proactive, non-delegable and penalties may apply for non-compliant individuals.
So it’s important to understand correctly.
Who is an Officer under Section 27?
The WHS Act adopts the definition of “Officer” from section 9 of the Corporations Act 2001 (Cth). It includes directors and company secretaries, but also individuals who make or participate in decisions affecting the whole or a substantial part of the business, those with capacity to significantly affect the company’s financial standing, and those on whose instructions directors are accustomed to act upon.
In SafeWork NSW v Aussie Skips [2022] NSWDC 276 the court found that Mr Emmanuel Roussakis, General Manager, was an Officer because he exercised substantial operational and financial control over the company, including authority over expenditure, invoicing and pricing. Following an on-site fatality, the Court found that Mr Roussakis was in a position to have taken reasonable steps to ensure that Aussie Skips implemented appropriate resources to eliminate WHS risks. Mr Roussakis was found to have failed to take those steps and was fined $60,000.
By contrast, in McKie v Al-Hasani and Kenoss Contractors Pty Ltd (In Liq) [2015] ACTIC 1, Mr Al-Hasani, Project Manager, was held not to be an Officer following a fatality. Although he managed projects and liaised with clients, he lacked any authority over the company’s finances and strategic decision making. Mr Al-Hasani had operational responsibilities in relation to specific projects, but did not have sway over the decision-making processes for the company as a whole.
“A person conducting a business or undertaking must ensure, so far as is reasonably practicable, the health and safety of workers engaged, or caused to be engaged by the person, while the workers are at work in the business or undertaking.”
What Does Due Diligence Require?
Section 27(5) sets out six elements of due diligence for Officers to address: maintaining WHS knowledge, understanding operational hazards, ensuring resources and processes, implementing systems for hazard reporting, ensuring compliance with WHS obligations, and verifying effectiveness.
In SafeWork NSW v Cameron Doueihi [2024] NSWDC 323, Scopeview Projects was engaged to carry out renovations at a property in North Bondi. A geotechnical report identified structural risks, yet no steps were taken to brace walls or implement safe work methods. Communication about safety was informal and there were no risk assessments or written safety plans. When a masonry wall collapsed, causing serious injuries, the court found that Mr Doueihi, the company’s director, had failed to ensure the company had appropriate resources and processes and had not verified WHS compliance. Mr Doueihi was fined $60,000.
By contrast, in SafeWork NSW v Mitchell Doble [2024] NSWDC 58 the court acquitted a director despite the company breaching its primary WHS duty. Mr Doble employed a dedicated safety manager, required regular reporting, and took an active interest in WHS issues. He visited sites and followed up on WHS concerns. The court accepted that due diligence does not require Officers to personally implement safety measures, but to ensure systems exist and are monitored. Delegation, when reasonable and supported by oversight can satisfy the duty of due diligence.
Mapping s27(5) due diligence to psychosocial hazard compliance (what “good” looks like)
For company Officers, compliance begins with leadership. Workplace health and safety should be a standing agenda item at board meetings. Officers can subscribe to regulator updates, review codes of practice, and seek specialist advice. Budget decisions should prioritise safety because courts have repeatedly criticised cost-cutting exercises that compromises risk management. Clear reporting lines for hazards and incidents, regular audits, and documented verification processes are essential.
Use this as a board/executive “line of sight” from duty → system → evidence.
1) Keep WHS knowledge up to date (psychosocial included)
Do:
Regular briefings on psychosocial risk duties and regulator guidance.
Ensure leaders understand psychosocial hazard definitions and what must be managed.
Evidence:Board/ELT WHS updates, training records, regulator update subscriptions, legal update memos.
2) Understand operations + psychosocial hazards in your context
Do:
Identify where psychosocial hazards arise from work design/management, environment, interactions/behaviours (e.g., role overload, low control, poor support, conflict, bullying, fatigue, remote work isolation, customer aggression).
Evidence:Hazard register entries for psychosocial hazards; role/workload reviews; change impact assessments.
3) Ensure resources and processes to eliminate/minimise psychosocial risks
Do:
Fund and staff the controls (manager capability, job redesign, staffing models, rostering, safe workloads, systems for respectful behaviour, EAP as support not the primary control).
Apply the risk management process (identify → assess → control → review) to psychosocial risks as required.
Evidence:Budget approvals tied to controls; resourcing decisions; implemented control plans with owners/dates.
4) Ensure processes for receiving/responding to hazard & incident info
Do:
Have clear reporting channels for psychosocial hazards (confidential options, anti-retaliation protections, triage and response SLAs).
Ensure trends are analysed (repeat hotspots, teams, functions, change periods).
Evidence:Reporting procedures; dashboards; investigation/triage protocols; monthly trend reports to leadership.
5) Ensure processes for complying with WHS duties (including consultation)
Do:
Confirm the PCBU consults with workers/H&S reps on psychosocial hazards and controls (the Code sets expectations for practical steps).
Evidence:Consultation records; toolbox talk notes; HSR engagement minutes; change consultation logs.
6) Verify that resources/processes are working
Do:
Commission periodic audits, spot-checks, and effectiveness reviews (especially after restructures, incidents, high turnover, or complaints).
Ask: “Are controls implemented, used, and reducing risk?”
Evidence:Audit reports; action close-out evidence; lead indicators (workload, turnover, complaints) and lag indicators (claims, incidents) reviewed with actions.
The “Officer Psychosocial Assurance Pack” (keep this ready)
If you want a defensible position, keep these artifacts current:
Psychosocial hazard register + top risk summary
Risk assessments + control plan + implementation status
Consultation records (HSR/worker input)
Reporting metrics + trend analysis + response timeliness
Training completion and capability plan
Audit/verification reports + action close-out evidence
Board/ELT minutes showing decisions, resourcing, and follow-up
“We work with organisational leaders to make the “invisible – visible” , putting you in control and providing teams with the supports they need to thrive. Carolyn Grant
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