A monetary penalty is a sanction under the Safety Standards Act which aims to influence duty holder behaviour change and increase the level of duty holder participation in the safety system.
A safety manager may impose a monetary penalty on a person who fails to comply with any of the following:
- a provision of the Act or a regulation, the contravention of which is stated in the regulations to make the person liable to a monetary penalty;
- a compliance order;
- a discipline order;
- a safety order;
- a term or condition of a licence, permit, certificate or variance;
- a requirement, term or condition of an alternative safety approach.
Division 5, Section 40 (4) of the Safety Standards Act limits the maximum allowable monetary penalty for a contravention to $100,000. BCSA may issue a monetary penalty in any denomination up to this amount.
Safety managers are required by regulation to consider the following criteria before imposing a monetary penalty:
(a) previous enforcement actions under the Safety Standards Act for contraventions of a similar nature by the person;
(b) the extent of the harm, or of the degree of risk of harm, to others as a result of the contravention;
(c) whether the contravention was deliberate;
(d) whether the contravention was repeated or continuous;
(e) the length of time during which the contravention continued;
(f) any economic benefit derived by the person from the contravention.
These criteria are incorporated into the monetary penalty calculator (MPC), a tool that assists safety managers in consistently determining the severity of the non-compliant behaviour and the resulting penalty amount. BCSA uses the MPC in almost every instance of issuing a monetary penalty. The penalty amount recommended by the MPC and any decision to vary the amount of the monetary penalty recommended by the MPC are documented in the enforcement file.