Workplace fatality sees directors personally charged for breaches of duty under WHS Law

In many small businesses, directors are not only decision-makers but are also directly involved in day-to-day activities. This hands-on involvement brings unique advantages, but it also increases accountability under Work Health and Safety (WHS) law. Directors are recognised as “officers” of a Person Conducting a Business or Undertaking (PCBU) and, as such, carry significant legal obligations. Their foremost responsibility is to ensure the business maintains an effective WHS management system, one capable of identifying, eliminating, or controlling risks to safeguard the health and safety of workers and customers.

In SafeWork NSW v Crestville Holdings Pty Ltd; Garben and Stevens [2025] two of three directors of an indoor climbing gym in Sydney were investigated and charged following a fatality at the gym. Both directors were actively managing the business.

In October 2021, an experienced climber was using an auto-belay system on a 12.5-metre climbing wall when the lanyard snapped. The climber fell approximately 12 metres, sustained critical injuries, and later died. Subsequent investigations by SafeWork NSW and NSW Fire and Rescue Technical Rescue revealed:

• Auto-belay devices were overdue for servicing and showed significant wear.

• Maintenance logs had noted recurring slack in the lanyard, but corrective action was never taken.

• No effective system existed for ensuring inspections, servicing, or resolution of identified issues.

All three auto-belays were removed, examined and tested by SafeWork NSW and NSW Fire and Rescue Technical Rescue. This testing found that the auto-belays were overdue for servicing and exhibited significant signs of wear and tear that affected their overall functionality. Additionally, since its installation, there were four entries in the gym’s ‘spinners and ropes’ maintenance log, which noted that the auto-belay used by the climber had not been taking up the slack in the lanyard for the last 1 to 2 metres of the climb. Despite these entries, nothing was done about replacing the gear.

The court found that the directors had breached their Section 27(1) duty of care under the WHS Act by failing to:

• Implement and enforce a system for regular inspection, servicing, and issue resolution.

• Provide adequate training to workers on inspecting safety systems.

• Instruct climbers to stop using equipment if slack in the lanyard developed.

In addition, the company itself was also held liable under section 19(2) of the WHS Act for failing to provide safe systems of work.

The court noted that while some measures were in place, they were not enforced. Four separate reports in the logbook had gone unanswered, demonstrating a failure to monitor and resolve known risks. The company was fined $281,250, and the directors were fined $84,375 each, plus court costs.

Following the incident the directors permanently removed all auto-belays from the facility and overhauled their inspection and maintenance program, the new system mandating:

• Daily inspections with logging and remediation of issues.

• Quarterly inspections.

• Annual external inspections and testing.

Key Takeaways

This case reinforces why strong WHS governance is not optional. It is essential that directors lead from the front, by resourcing, monitoring, and enforcing effective safety systems.

• For small businesses, where directors are closely involved, accountability is direct and personal. Physical presence does not remove the need for formal systems; it heightens the responsibility to act on what is observed.

• For larger businesses, directors may not oversee operations directly, but they remain legally responsible. They cannot delegate their duties, though they can and must rely on their leadership teams to assist with assurance.

Ultimately, directors must ensure that WHS systems are robust, issues are monitored, and risks are controlled. Failure to do so can result in personal liability with real financial and reputational consequences.

For more information on WHS training or WHS compliance services, or if you would like help to make your WHS management system even more robust, please feel free to contact us by email at train@courtenell.com.au or phone us on 02 9552 2066