🇦🇺Australia

Work Health and Safety Act 2011 Violation - Duty of Care Non-Compliance

4 verified sources

Definition

Failure to establish and maintain duty of care systems for traveling employees (duty to monitor location, provide communication channels, conduct risk assessments, maintain emergency contact procedures) constitutes breach of Work Health and Safety Act 2011 (Model WHS Laws as applied in each State/Territory). Non-compliance can trigger: (1) regulatory investigation and penalties, (2) workers' compensation claims if employee is injured while traveling unsupervised, (3) director liability, (4) litigation costs from employee claims for negligence.

Key Findings

  • Financial Impact: LOGIC estimate: AUD $10,000–$100,000+ per violation (depending on severity and state jurisdiction); potential workers' compensation claim exposure of AUD $50,000–$500,000+ depending on injury severity; legal defense costs AUD $20,000–$200,000+
  • Frequency: Triggered upon WHS audit, employee injury during travel, or regulatory complaint
  • Root Cause: Absence of employee tracking technology; inadequate risk assessment processes; no crisis communication protocols; incomplete employee contact/emergency data

Why This Matters

The Pitch: Travel and HR-intensive businesses in Australia waste time and incur hidden liability costs managing duty of care manually. Automation of traveler tracking, risk assessment, and emergency communication protocols eliminates regulatory violation risk and associated financial exposure.

Affected Stakeholders

HR Manager, Travel Manager, Compliance Officer, Risk Manager, Director

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

BSP Reporting Non-Compliance Fines

AUD 10,000+ in potential airline claims per default; annual financial audits cost 20-50 hours

Remittance Holding Capacity Limits

2-5% lost sales revenue; AUD 50,000+ opportunity cost per period

Tourism Revenue Leakage - Export & Import Bleeding

90% of tourism booking revenues leak out; equivalent to AUD 95 loss per AUD 100 in bookings for developing country destinations. For Australian domestic/regional tourism: up to 90% leakage to international companies.

Tourist Refund Scheme GST Evasion Risk

AUD 500 million total government loss; per-firm exposure depends on TRS transaction volume and audit risk (estimated AUD 50,000–500,000 per medium-sized travel firm if non-compliance detected).

Booking Commission & Pricing Discrepancy Loss

Estimated 2–5% of annual booking revenue lost (LOGIC-based extrapolation from airline 3% benchmark). For a mid-sized travel firm with AUD 10 million annual bookings: AUD 200,000–500,000 annual leakage.

GST Invoice Non-Compliance and ATO Audit Risk

AUD 5,000-25,000 per audit cycle in penalties and remediation; estimated 8-15 hours/month manual reconciliation of non-compliant invoices

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