PCBU stands for Person Conducting a Business or Undertaking, the fundamental WHS duty holder under the WHS Act and WHS Regulation.

 

The concept of a PCBU recognises that modern work arrangements are complex and that responsibility for health and safety extends beyond traditional employer-employee relationships.

 

 

What Does “Person” Mean in "Person conducting a business or undertaking"?

In WHS law, “Person” does not only mean an individual human being. It also includes legal entities such as companies, partnerships and unincorporated associations, government departments, public authorities, volunteer organisations that employ workers, sole traders, and self-employed persons

 

In simple terms, the PCBU is the organisation or business itself.

 

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Businesses vs Undertakings

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The WHS Act does not strictly define these two terms, but their ordinary meanings apply:

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• A business generally involves commercial or profit-driven activities conducted with organisation and continuity.

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• An undertaking refers to organised activities that may not be commercial in nature, such as charities, community organisations, or government services. For example, a not-for-profit organisation that employs staff is considered a PCBU because it conducts an undertaking with work health and safety obligations.

 

 

What or Who is not a PCBU?

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The following are not considered PCBUs:

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• Individual elected members of local councils

• Volunteer associations that do not employ anyone

• Strata bodies corporate responsible only for residential areas

• Workers and officers (as they are covered under separate duties)

 

 

Officers and Their Role

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While the PCBU carries the primary duty of care, Officers such as company directors, board members, or executives must exercise due diligence to ensure the PCBU meets its WHS obligations.

This includes:

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• Gaining and keeping up-to-date knowledge of WHS matters

• Understanding the hazards and risks associated with business operations

• Ensuring appropriate resources, systems, and processes are in place to eliminate or minimise risks

• Actively verifying that these systems are working effectively

 

 

What about Sole Traders?

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A sole trader operates as both the business entity and the individual person. In a sole trader arrangement, the business name (or ABN entity) is legally recognised as the PCBU. The individual is the Director of that business and is considered as the Officer. For example, if Emma Smith operates “Smith Electrical Services” as a sole trader:

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• The business Smith Electrical Services is the PCBU.

• Emma Smith the individual is the Officer.

 

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Self-Employed Persons

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A self-employed person is someone who works for themselves and conducts their own business or undertaking, rather than being employed by another person. This means the self-employed person is both the PCBU (Person Conducting a Business or Undertaking), and the Officer of that PCBU.

 

Consider John Lee, and independent IT Consultant. John Lee is the PCBU because he conducts a business on his own behalf. John Lee is also the officer as the same individual who makes decisions for their own business.

 

 

Does "I didn't know" excuse me or my company from being prosecuted for WHS violations or workplace incidents?

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Ignorance of WHS duties is not a defence under the law. A PCBU must proactively manage risks, consult with workers and other duty holders, and maintain a functioning WHS management system.

 

Directors and Officers can be held personally accountable for failures to exercise due diligence, including significant financial penalties and, in serious cases, prosecution.

 

Maintaining a functional, documented safety management system and promoting a proactive safety culture are essential steps to meeting these legal and ethical obligations.

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How can I improve or validate my knowledge about this?

​Courtenell offers several WHS law-specific, short training courses aimed at strengthening the knowledge and confidence of business owners, directors, and CEOs, as well as managers and supervisors in their WHS duties and obligations.
 

Contact Courtenell on 9552 2066 for more information or MAKE AN ONLINE ENQUIRY for a follow-up from one of our subject matter experts and training advisors.

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