Labour-Hire Firm Found Liable After Failing to Check Worker Duties

NSW District Court recently in SafeWork NSW v Momentum Consulting Group Pty Ltd [2025] NSWDC 400 found that a labour-hire company could not rely on a “mistake-of-fact” defence after one of its workers suffered a catastrophic injury while operating machinery at a host employer’s site.

The PCBU argued it wasn’t guilty of a WHS breach because it believed its workers wouldn’t be using pallet riders. But the Court found this belief was based on assumption—not inquiry. The PCBU hadn’t asked the right questions, hadn’t provided training and hadn’t obtained written role descriptions. The result: a worker’s leg was amputated after a collision between two pallet riders.

The Court found that the PCBU’s consultation process was inadequate and driven more by commercial interests than safety. The PCBU’s failure to understand what its workers were actually doing meant it couldn’t ensure they were properly trained or supervised. The “mistake-of-fact” defence was rejected and PCBU was found guilty of breaching its WHS duties.

Our Take

This case is a clear reminder that WHS obligations don’t stop at the host employer’s door. Labour-hire firms must take active steps to understand the work their employees are doing—even if it’s off-site.

In this case the failure wasn’t just procedural—it was cultural. The PCBU prioritised business over safety, relied on assumptions and didn’t follow up with proper checks. The fact that workers were using machinery without training and that no one had clearly defined their duties, is a serious breakdown in WHS responsibility.

The Court’s message is simple: you can’t claim ignorance if you didn’t ask. WHS duties require proactive engagement. If you’re placing workers into another business, you need to know what they’ll be doing, how they’ll be doing it and whether they’re safe.

Action Items:

• Conduct Proper Site Checks - Before placing workers, inspect host sites and ask detailed questions about tasks, equipment and safety systems.

• Get Clear Role Descriptions - Require host employers to provide written descriptions of duties before workers start.

• Ensure Training is Provided - Confirm workers are trained for any equipment they’ll be expected to use—even if it wasn’t mentioned initially.

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