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PCBU

Also known as: Person conducting a business or undertaking

Definition

A PCBU (person conducting a business or undertaking) is the legal term in Australian WHS laws for the business, organisation or individual that carries the primary duty of care for health and safety at work. On a construction site the builder, every subcontractor and the client can all be PCBUs.

PCBU Meaning in Plain English

PCBU stands for person conducting a business or undertaking. The term was introduced by the model Work Health and Safety Act 2011 to replace older ideas like "employer". It focuses on who runs the work, not on whether there is an employment contract.

A PCBU can be a company, a sole trader, a partnership, a government department or a not-for-profit that employs people. What makes someone a PCBU is that they conduct a business or undertaking, alone or with others, whether or not for profit. Workers, officers acting in that role, and volunteer associations with no employees are not PCBUs.

What a PCBU Must Do

The primary duty of care in section 19 of the model WHS Act requires a PCBU to ensure, so far as is reasonably practicable, the health and safety of its workers and of other people affected by its work. In practice that means:

  • Safe work and systems. Provide and maintain a safe work environment, safe plant and structures, and safe systems of work.

  • Safe substances. Ensure the safe use, handling and storage of plant, structures and substances.

  • Facilities. Provide adequate facilities for workers' welfare.

  • Information and training. Give the information, training, instruction and supervision workers need.

  • Monitoring. Monitor workers' health and workplace conditions to prevent illness and injury.

PCBUs must also consult with their workers on health and safety matters, and notify the regulator of notifiable incidents.

Multiple PCBUs on a Construction Site

A construction site almost always has several PCBUs at once: the principal contractor, each subcontractor, labour hire companies, plant hire suppliers and often the client. Their duties overlap, and none of them can contract out of their own duty.

The model Act requires PCBUs who share a duty to consult, cooperate and coordinate with each other so far as is reasonably practicable. The model Act also makes clear that a duty can be held by more than one person at the same time, and each duty holder must meet it to the extent of their capacity to influence and control the matter. On a commercial project that is usually done through the principal contractor's site rules, inductions, SWMS reviews and coordination meetings. Each PCBU is still responsible for the part of the risk it can influence or control.

The officers of a PCBU, such as directors and senior managers who make decisions affecting the whole business, have a separate duty to exercise due diligence to make sure the PCBU complies.

PCBU vs Employer in Victoria

Victoria is the only jurisdiction that has not adopted the model WHS laws. The Occupational Health and Safety Act 2004 (Vic) places the main duties on "employers" and "self-employed persons" instead of PCBUs, with separate duties for people who manage or control workplaces.

The practical outcome is similar, but the wording and some duties differ, so documents written for a Victorian site should use the Victorian terms. Western Australia adopted the model framework through its Work Health and Safety Act 2020, so the PCBU concept applies there.

Frequently asked questions

What does PCBU stand for?

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PCBU stands for person conducting a business or undertaking. It is the term used in the model Work Health and Safety Act 2011 for the party that holds the primary duty of care for workers and others affected by the work.

Is a subcontractor a PCBU?

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Yes. A subcontracting business, including a sole trader, is a PCBU in its own right. It owes duties to its own workers and to others on site, and must consult, cooperate and coordinate with the principal contractor and other PCBUs.

Is a worker a PCBU?

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No. A worker carrying out work for a PCBU is not a PCBU because of that work. Workers have their own duties under the model WHS Act, such as taking reasonable care for their own safety and following reasonable instructions.

What is the difference between a PCBU and a principal contractor?

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Every principal contractor is a PCBU, but not every PCBU is a principal contractor. The principal contractor is the one PCBU appointed or taken to manage a construction project, with extra duties such as preparing the WHS management plan and controlling site security.

Does Victoria use the term PCBU?

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No. Victoria's Occupational Health and Safety Act 2004 uses "employer" and "self-employed person" instead. The duties are broadly similar, but businesses working in Victoria should use the Victorian terms and check WorkSafe Victoria guidance.

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Site & HSEQ Management

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Project record

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RFI-022

Answered

SWMS-031

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Site & HSEQ Management

Every worker inducted. Every SWMS signed. Every incident logged.

Plexa runs Health, Safety, Environmental and Quality on one platform, on mobile, from the gate to close-out.

Project record

Live

Variation V-014

Priced

RFI-022

Answered

SWMS-031

Approved

Progress claim 7

Submitted

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