The 2024 amendments to the Occupational Safety and Health Act 1994
clarify that safety responsibility is not limited to direct
employees. Section 18A introduces a significant "duty of care"
for principals toward contractors.
A "Principal" is defined as anyone who contracts with another
to carry out work for their business. Under Section 18A, a
principal must ensure the safety and health of any contractor,
subcontractor, or their employees, provided these workers are
operating under the principal's direction.
This means principals must allocate sufficient time, budget,
and resources to ensure safe systems of work are in place for
external vendors. Failure to fulfill these duties is a
serious offence under Section 19, carrying a penalty of up
to RM500,000 or two years of imprisonment. This ensures that
companies cannot outsource their safety liabilities by
simply hiring third-party contractors.
