Subcontractor WHS Requirements in Australian Construction

A common misconception in the construction industry is that subcontractors operate under the safety umbrella of the principal contractor or head contractor. This is incorrect under the WHS Regulation 2025. A subcontractor who engages workers or directs work activities is a Person Conducting a Business or Undertaking in their own right. This means they hold primary WHS duties that exist independently of any contractual arrangement with a principal contractor. The concept of dual or concurrent duties is central to the WHS framework. Both the principal contractor and the subcontractor owe duties to the same workers at the same time, and neither can contract out of those duties. A subcontractor cannot defend a prosecution by claiming the principal contractor was responsible for safety on site. Equally, a principal contractor cannot escape liability by arguing that the subcontractor was managing its own risks. Each PCBU must discharge its own duties to the extent of its influence and control over the relevant matter.

For every item of high-risk construction work, the PCBU directing that work must ensure a Safe Work Method Statement is prepared before the work commences. A subcontractor engaged to perform high-risk construction work is the PCBU directing that work and must therefore prepare its own SWMS. Relying on a generic SWMS provided by the principal contractor or using a template without site-specific and task-specific adaptation does not satisfy this obligation. The subcontractor's SWMS must identify the specific high-risk construction work to be carried out, the hazards arising from that work in the context of the particular site, the control measures to be implemented to manage those risks, and how those controls will be put in place and monitored. Workers who will carry out the work must be consulted during the preparation of the SWMS and must have access to it before commencing the task. The SWMS must be reviewed and revised whenever there is a change in circumstances that may affect the health and safety of workers performing the work.

Before mobilising to a construction site, subcontractors must ensure they hold current public liability insurance, workers compensation insurance for all engaged workers, and any trade-specific licences or registrations required by state or territory legislation. Many principal contractors operate prequalification schemes that assess a subcontractor's WHS management system, incident history, training records, and insurance coverage before allowing them to tender for work packages. Schemes such as those administered by the Office of the Federal Safety Commissioner for Commonwealth-funded projects set minimum benchmarks that subcontractors must meet. Subcontractors must also ensure their workers complete the required general construction induction training and hold a current white card before entering any construction workplace. Site-specific induction delivered by the principal contractor supplements but does not replace the general induction. Subcontractors should maintain their own training registers and verify the currency of all worker competencies, licences, and inductions before deploying personnel to any project.

Section 84 of the WHS Act provides workers with the right to cease or refuse to carry out work if they have a reasonable concern that carrying out the work would expose them to a serious risk to their health or safety arising from an immediate or imminent hazard. This right applies equally to employees and to workers engaged by subcontractors. A subcontractor must not direct, encourage, or pressure a worker to continue work in circumstances where the worker has exercised this right. The subcontractor must also not discriminate against or dismiss a worker for refusing unsafe work. When a worker ceases work under Section 84, the subcontractor must consult with the worker and any relevant health and safety representative to attempt to resolve the concern. If the issue cannot be resolved, either party may request the attendance of an inspector. Subcontractors should ensure their supervisors and leading hands understand the legal protections afforded to workers who refuse unsafe work and that disciplinary action for exercising this right constitutes a criminal offence under the WHS Act.