The ACT has made Australian legal history by becoming the first-ever jurisdiction to make companies liable for criminal prosecution if an employee dies at work. Similar efforts in NSW and Victoria have failed.

Despite pressure from the Commonwealth and major trade organisations, the ACT Legislative Assembly voted in the laws last week, making big businesses potentially liable for penalties of up to $5 million.

Industrial Relations Minister Katy Gallagher says the legislation is “a key component” of her occupational health and safety reform.

“The Government’s position is clear – if a workplace death occurs and that death can be attributed to the employer, then the death should be treated with the seriousness it deserves.

“The challenge for those who oppose this legislation is to convince me that any reckless employer who significantly contributes to the death of a worker through a reckless or negligent act should not be charged with a criminal act,” Ms Gallagher said.

Under the current ACT Crimes Act, individuals can already be charged with manslaughter when they contribute to a death; but the new laws ensure companies can be held responsible if criminal, reckless or negligent activities cause the death of an employee.

Ms Gallagher rejects complaints about the legislation – which officially comes into action on March 1 next year – saying it doesn’t impose vicarious liability on employers. She also says companies which already adhere to workplace responsibilities under the 1989 Occupational Health and Safety Act have “nothing to fear”.

But Peter Hendy, CEO of peak employer body the Australian Chamber of Commerce and Industry, says the legislation won’t improve Australia’s workplace fatalities rate, and is just a response to extreme unionist concerns.

“Australian criminal law already provides mechanisms for any person in the community who intentionally or recklessly causes death of another – including in the workplace – to be charged… with murder or manslaughter.”