Gap in SafeWork SA’s powers to investigate revealed during parliamentary inquiry

SafeWork inquiries are being stopped in their tracks as businesses close up shop while they’re being investigated.

SafeWork SA is powerless to investigate and prosecute businesses accused of wrongdoing if they shut up shop before it can gather evidence, a state parliamentary inquiry has heard.

The work health and safety regulator told a parliamentary committee on Wednesday that inquiries were being thwarted by businesses closing down mid-investigation because the organisation did not have the authority to look into matters outside of workplaces.

The gap in SafeWork’s jurisdiction came to light when it was revealed during the hearing that SafeWork SA’s investigation into an alleged assault at city bubble tea shop Fun Tea had come to a halt because the owners had shut down their three stores.

SafeWork SA executive director Martyn Campbell told the committee if a business did not exist under the Corporations Act, “then there is no way for us or me as the regulator to lay charges against (them)”.

“Because the (Fun Tea) businesses shut up shop … and vacated the premises, we’ve not been able to exercise our powers with the business owners to actually get further information,” he said.

“Because the (Fun Tea) businesses shut up shop … and vacated the premises, we’ve not been able to exercise our powers with the business owners to actually get further information.” Picture: NCA NewsWire / Kelly Barnes

Mr Campbell explained that SafeWork SA’s powers were limited to the workplace.

“So if a business owner, in this situation the owner of Fun Tea, retreats to their home address then it would be difficult for us to exercise any statutory powers,” he said.

“We do have statutory powers to seize documents, to seize exhibits (and) we can compel owners of businesses to be interviewed and speak to us … but nonetheless, if it’s not in the workplace then our powers are limited under the Work Health and Safety Act.”

Mr Campbell said it was “not uncommon for us to come across investigations where it’s to the point a business falls and closes”.

He said he would welcome an expansion of SafeWork SA’s powers to close the gap.

“It would be fantastic for me as a regulator to be able to exercise the powers we have outside of those workplaces,” Mr Campbell said.

Treasurer Rob Lucas said the issue had not previously been raised with him but he would seek legal advice as well as further information from SafeWork SA and “the Government will consider our options”.

In February, footage emerged on social media of a brawl that broke out in Fun Tea, on Gouger St, allegedly showing a woman, in her early 20s, being punched and kicked.

The attack was allegedly sparked by an argument about wage theft. The business has denied the allegation.

Police charged a 39-year-old Glen Osmond man with assault over the incident and he will appear in the Adelaide Magistrates Court in May.

Mr Campbell said his investigators had attempted to get in touch with the Fun Tea owners but “not been able to make any contact whatsoever”.

He said SafeWork SA had also been advised that the victims did not wish to speak to the organisation.

Mr Campbell said while assaults in the workplace fell under SafeWork SA’s jurisdiction, it had the power to refer such matters to SA Police.

Meanwhile, SA Labour Info Hub founder Jackie Chen told the committee his organisation aimed to tackle wage theft in Adelaide’s Chinatown and had so far discovered more than 150 businesses that were underpaying staff.

“Most of them are (paying) under $15 an hour (while) the lowest rate was $3 an hour,” he said.

SA Unions secretary Angas Story said people who work in Australia on visas often “end up being badly ripped off”.

“I think it is right to call it slavery, because those people do not have the rights that ordinary Australians would have,” he said.

“And for the range of other social and cultural reasons they are not able easily, where there is support for them, to find that support or exercise it or extract themselves from the situation they are in.”