You Can Call It a “Licence”… But the Code Still Applies.
Case Review: Work Health Authority v Outback Ballooning Pty Ltd [2019] NTSC 55
Outback Ballooning, an Alice Springs hot air balloon operator, faced a tragic incident during pre-flight preparations. A passenger’s scarf was drawn into an inflation fan, leading to fatal injuries. The company was subsequently charged under Northern Territory Work Health and Safety (WHS) laws.
The Problem
The Outcome
Specifically, the High Court ruled that the operation of the inflation fan was a workplace activity subject to WHS duties. The argument that federal law exclusively governed all aspects of their operation, including ground-based activities, did not hold up.
- High Court allowed the Work Health Authority’s appeal.
The Lesson for Franchisors
Don’t assume that industry-specific regulations (whether aviation, franchising codes, or other sector-specific rules) provide a shield against broader legal obligations like WHS. Your primary regulator’s rules are not a ‘get out of jail free’ card for general safety or employment duties.
Franchisors must ensure that all aspects of their operations, including seemingly routine equipment use, are assessed against all relevant safety standards, not just those specific to their niche.
If you’re reviewing franchise documents or unsure whether the disclosure stacks up — it’s worth getting clarity early.
We can walk you through it.