The short version
- Every business must ensure, so far as is reasonably practicable, the health and safety of its workers and anyone affected by its work.
- “Health” includes mental health, not just physical safety.
- Directors and senior managers have a personal duty to make sure the business complies.
- Since 1 July 2026 you must follow approved codes of practice, or meet an equal or higher standard.
- Failing in your duty is a crime, even if nobody is hurt. Company fines go up to $11.6 million, and a workplace death caused by gross negligence can mean up to 25 years’ jail.
In this article
- The WHS Act in Plain English
- What Is the WHS Act?
- The Primary Duty of Care
- What Does “Reasonably Practicable” Mean?
- How Do You Stay Compliant?
- Case Study: John’s Climbing Gym
- What Happens If SafeWork NSW Investigates?
- WHS Penalties in NSW (2026–27)
- Recent Changes Every NSW Business Should Know
- Key Takeaways
- Frequently Asked Questions
- Under Investigation by SafeWork NSW?
The WHS Act in Plain English
First published 10 January 2026. Updated 16 October 2026 with the 2026–27 penalties, the new duty to follow codes of practice, and which courts now hear workplace safety cases.
Keeping people safe at work is not just the right thing to do. In New South Wales it is the law. The Work Health and Safety Act 2011 (NSW) (the WHS Act) sets out what businesses, managers and workers must do to protect workers, customers and the public.
If you run a business, manage staff or sit on a board, you need to understand it. It applies to businesses big and small.
Eric Navea previously worked as a Principal Lawyer at SafeWork NSW, where he was involved in some of the most serious and complex WHS prosecutions in NSW.
What Is the WHS Act?
The WHS Act is the main workplace safety law in NSW. It covers almost every type of business and workplace, from construction sites and transport operators to offices, shops, gyms and professional services.
Most other states and territories have almost identical laws, based on the same national model. Victoria is the main exception, with its own Occupational Health and Safety Act 2004.
Who has duties under the Act?
Businesses
The law calls them a “person conducting a business or undertaking” (PCBU). This includes companies, sole traders, partnerships and not-for-profits. They carry the main duty to keep people safe.
Officers
Directors, company secretaries and senior managers who make major decisions. They must take reasonable steps (called “due diligence”) to make sure the business meets its duties.
Workers
Employees, contractors, labour hire workers, apprentices and volunteers. They must take reasonable care for their own safety and others, and follow reasonable safety instructions.
Other people at the workplace
Visitors, customers and members of the public must take reasonable care and follow reasonable safety instructions while they are there.
The Primary Duty of Care
The centre of the WHS Act is the primary duty of care in section 19. A business must ensure, so far as is reasonably practicable, the health and safety of its workers while they are at work. It must also make sure other people, such as customers and visitors, are not put at risk by its work.
In practice, that means providing and maintaining:
- a safe work environment
- safe machinery, equipment and structures
- safe ways of doing the work
- safe use, handling and storage of equipment and substances
- proper facilities for workers, such as toilets, drinking water and break areas
- the information, training, instruction and supervision people need to work safely
- monitoring of workers’ health and workplace conditions, where needed to prevent illness or injury
There is no small business exemption. Even self-employed people must look after their own health and safety at work.
Under the WHS Act, “health” means physical and psychological health.
Risks to mental health, such as bullying and harassment, are managed in the same way as physical risks.
What Does “Reasonably Practicable” Mean?
The law does not expect you to remove every possible risk. It expects you to do what is reasonably able to be done. Under section 18, you weigh up:
- How likely is it? The chance of the hazard or risk happening.
- How bad could it be? The harm that could result.
- What do you know? What you know, or ought reasonably to know, about the risk and how to control it.
- What can be done? Whether suitable ways to remove or reduce the risk are available.
- What does it cost? Cost is considered last. It only rules out a safety measure if the cost is grossly disproportionate to the risk.
“It was too expensive” is rarely a defence. Where a serious risk can be fixed with a reasonable measure, the law expects you to use it.
How Do You Stay Compliant?
Use this as a practical checklist for your business.
- Identify the hazards. Walk through your workplace and your work. What could hurt someone, physically or mentally?
- Assess the risks. For each hazard, consider how likely harm is and how serious it could be.
- Eliminate the risk if you can. This is always the first goal.
- If you can’t, minimise it. Use the most effective controls first, such as safer equipment or physical barriers, before relying on rules, training or protective gear.
- Talk to your workers. You must consult workers who are likely to be affected by a safety matter. They often know the risks best.
- Follow the codes of practice. SafeWork NSW publishes approved codes for common risks, such as falls, hazardous chemicals and psychosocial hazards. From 1 July 2026 you must follow them, or manage the risk to an equal or higher standard.
- Write it down and review it. Record your risk assessments and controls, and review them regularly and after any incident or change.
- Report serious incidents straight away. Deaths, serious injuries and dangerous incidents must be reported to SafeWork NSW immediately. Don’t disturb the site until an inspector arrives or says you can, unless you need to help someone or make the area safe.
Case Study: John’s Climbing Gym
John owns and runs a gym with a climbing wall that members can use. He has five employees, but only two work directly with the climbing wall.
There is an obvious risk that an employee or member could be seriously injured or killed in a fall. When John assesses the risks, he might ask:
- Do we have the right equipment to prevent falls, or reduce the harm if someone does fall?
- Do we inspect and maintain that equipment on a regular schedule, and record it?
- Have all staff been trained, including casuals and anyone covering a shift?
- Are members given clear safety instructions, and are they supervised?
- Is there an approved code of practice that applies to working or climbing at height?
- If a fall does happen, can staff give first aid quickly, and do they know to notify SafeWork NSW?
As the owner and decision-maker, John is also an officer. He needs to check these things are actually happening, not just written in a manual.
Contacted by SafeWork NSW?
Get advice before you respond. The early stages of an investigation can shape everything that follows.
What Happens If SafeWork NSW Investigates?
SafeWork NSW investigates possible breaches of the WHS Act. Inspectors can visit workplaces, and SafeWork NSW can issue notices forcing you to hand over documents, answer questions or attend an interview. Ignoring these is an offence. Read our guide to SafeWork NSW notices to produce.
Not every investigation ends in court. Possible outcomes include:
Improvement notice
You must fix a safety problem by a set date. The workplace can usually keep operating.
Prohibition notice
Work or an activity must stop, or change, straight away because of a serious risk.
Penalty notice
An on-the-spot fine for certain offences. You can pay it or have the matter decided by a court.
Enforceable undertaking
A binding agreement to carry out safety improvements instead of being prosecuted. Not available for Category 1 offences or industrial manslaughter.
Prosecution
Criminal charges in court, with fines and, for the most serious offences, jail.
Which court hears WHS cases?
The Industrial Court of NSW has been re-established and now hears many WHS prosecutions. Which court hears a case depends on how serious the offence is:
Industrial manslaughter, and Category 1 offences by an individual
Where it is heard: District Court or Supreme Court, prosecuted by the Director of Public Prosecutions
All other WHS offences, including Category 2 and 3
Where it is heard: Industrial Court of NSW or Local Court
WHS prosecutions can be complex and run for a long time. Early advice can help you respond to the investigation properly and, if charges are laid, narrow the issues in dispute.
WHS Penalties in NSW (2026–27)
Failing to meet a health and safety duty falls into one of three categories, depending on how serious it is:
- Category 3: failing to meet your duty. No one needs to be hurt.
- Category 2: failing to meet your duty in a way that exposes someone to a risk of death or serious injury or illness.
- Category 1: doing this with gross negligence or recklessness.
These are the maximum penalties for the 2026–27 financial year. They go up every 1 July.
Category 3
Individual: $77,914
Individual business owner or officer: $155,829
Company: $779,145
Category 2
Individual: $232,716
Individual business owner or officer: $465,433
Company: $2,326,910
Category 1
Individual: $1,160,117 and/or 10 years’ jail
Individual business owner or officer: $2,413,809 and/or 10 years’ jail
Company: $11,606,824
Industrial manslaughter
Individual: Not applicable
Individual business owner or officer: Up to 25 years’ jail
Company: $20,000,000
Industrial manslaughter applies when a business or officer causes a worker’s or other person’s death through grossly negligent conduct that breaches a health and safety duty. It has been in force since 16 September 2024.
Recent Changes Every NSW Business Should Know
- 16 September 2024: industrial manslaughter became an offence under the WHS Act.
- 1 July 2025: SafeWork NSW became a standalone regulator, led by a SafeWork Commissioner.
- 1 March 2026: registered organisations, such as unions, can bring their own prosecutions where SafeWork NSW has declined to.
- 1 July 2026: businesses must comply with approved codes of practice, or meet an equal or higher standard.
- Every 1 July: penalty amounts increase in line with inflation.
- Coming soon: the Act will expressly require businesses to manage risks from “digital work systems”, such as algorithms, AI and online platforms that allocate work. Most of these changes start on a date still to be set.
Courts can also now allow prosecutions to start after the usual time limit has passed, if that is in the interests of justice.
Key Takeaways
- Almost every business in NSW, large or small, must ensure so far as is reasonably practicable the health and safety of its workers, customers and the public.
- You must eliminate risks where you can and minimise them where you can’t. Failing to do so is an offence even if nobody is injured.
- Directors and senior managers can be prosecuted personally, even if the company is not.
- WHS investigations and prosecutions are complex. Get advice early, before you respond to SafeWork NSW.
Frequently Asked Questions
Does the WHS Act apply to small businesses?
Yes. There is no small business exemption. Sole traders and self-employed people must also ensure their own health and safety at work. What is “reasonably practicable” can differ between a small and large business, but the duty is the same.
Can directors be personally liable under the WHS Act?
Yes. Directors and other officers must exercise due diligence to make sure the business meets its safety duties. They can be prosecuted personally, even if the company itself is not convicted.
What is the difference between Category 1, 2 and 3 offences?
Category 3 is failing to meet a safety duty. Category 2 is failing in a way that exposes someone to a risk of death or serious injury. Category 1 is doing so with gross negligence or recklessness, and can lead to jail.
Do I have to follow SafeWork NSW codes of practice?
From 1 July 2026, yes. You must comply with approved codes of practice, or manage the hazards and risks to a standard that is equal to or higher than the code.
What should I do if SafeWork NSW contacts my business?
Take it seriously and get legal advice before you respond. Note any deadlines, keep all records, and don’t give statements or documents until you understand what is being asked and why.
Under Investigation by SafeWork NSW?
The early stages of a SafeWork NSW investigation can shape everything that follows. Eric Navea is a SafeWork NSW defence lawyer who previously worked as a Principal Lawyer at SafeWork NSW. He knows how these investigations are run from the inside.
Eric will identify the immediate issues, important deadlines and the information needed to properly assess your position. He deals with SafeWork NSW for you, guides you through the investigation and, if charges follow, represents you in court.
Contacted by SafeWork NSW? Speak with Eric before you respond.
Speak With Eric Before You RespondDisclaimer
This article is general information only, current as at 16 October 2026, and is not legal advice. Penalty amounts are for the 2026–27 financial year and may change. Your situation depends on your own facts, so speak with a lawyer before responding to SafeWork NSW.
Sources (accessed 16 October 2026)
- NSW Legislation – Work Health and Safety Act 2011 (NSW)
- SafeWork NSW – Penalties for work health and safety offences (2026–27)
- SafeWork NSW – Legislation and recent changes
- SafeWork NSW – Work Health and Safety Amendment (Industrial Manslaughter) Act 2024
- SafeWork NSW – Directors and officers
- SafeWork NSW – Improvement, prohibition and penalty notices
- SafeWork NSW – Enforceable undertakings
- SafeWork NSW – Prosecution guidelines
- Industrial Relations Commission of NSW – Industrial Court of New South Wales
