MANAGEMENT

OF INTERNATIONAL FINANCIAL SERVICES

4. PREVENTION OF OCCUPATIONAL HAZARDS

To conclude this educational manual on Labour Consultancy we will discuss a very

important issue that no company should neglect; prevention of occupational hazards.

By way of definition, prevention of occupational hazards is the set of actions and

measures, either adaptive or preventative, in all aspects of a company's activity that are
established to avoid or lessen the chances that a worker suffers some type of damage
at work. These can occur through accident, disease, illness, or injury.

Thus, prevention of occupational hazards focuses on four areas:

- Industrial Safety: is the system of mandatory provisions put into place to prevent
and limit risks. It also protects against accidents arising from industrial activity
that may result in damage to people, property, or the environment.
In Spain, the rules governing this matter are set out in Industry Law 21/1992 and
Royal Decree 2200/1995 amending regulation of Infrastructure for Industrial
Quality and Safety.
Internationally this matter is regulated by OSHA (Occupational Safety and Health
Administration), an international organisation commissioned to create laws
concerning health and safety in the four main industrial sectors: general industry,
maritime industry, construction and agriculture.
- Industrial Hygiene: refers to preventive disciplines that study the environmental
conditions of work and identify, evaluate and control contaminants and
pollutants that can adversely affect both the environment and the workers. In
sum, it is a method designed to prevent occupational illnesses and diseases.
A contaminant is a chemical or living substance, or energy present in the work
environment which in sufficient quantity or concentration, can adversely affect
the health of those in contact with it. These contaminants are usually not

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perceived by the human senses, and for this reason it is important to be attentive
to their presence in order to prevent contamination by them.
Thus, the task at hand is to identify possible contaminants, determine their
presence and concentration, assess the implications of exposure in regards to
danger for the environment and the workers, and determine preventative
measures so as to avoid contact with them.
More information on this subject can be found on the website of the National
Institute for Occupational Safety, Health and Welfare in the Workplace.
http://www.insht.es/portal/site/Insht/menuitem.75eb39a3ca8b485dce5f66a1
50c08a0c/?vgnextoid=75164a7f8a651110VgnVCM100000dc0ca8c0RCRD
- Ergonomics and applied psychology: the principal objective of these applied
sciences is to assure that physical, mental, and social aspects of the working
environment are appropriately catered to the needs of the worker. Thus,
ergonomics and applied social psychology not only focus on mitigating negative
effects on health, but seek to improve working conditions and to improve
personal interactions with the surrounding environment.
- Work Medicine: This is a specialised medical practice devoted to the study of
work related illnesses and accidents, as well as the establishment of preventative
measures to avoid these accidents and their consequences. The principal
objectives focus on:
o The analysis and prevention of risks that can affect human health as a
result of the circumstances and conditions of work.
o The study of work-related woes in their two major occurrences, accidents
and occupational illnesses, and the adoption of necessary therapeutic
and restoration measures to address them.
o To study and assess the consequences of occupational illnesses on
human health, specifically in cases of disability.

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Further information and online links have been provided in the annex to learn more
about occupational health policy.

When looking at the different areas addressed in the study and prevention of
occupational risks, it is important to understand the obligations and risks that both
employers and employees are subjected to.

At the legislative level, the law governing the prevention of occupational hazards is Law
31/1995.

§ Employer's obligations concerning risk prevention

Every employer is obligated to offer their employees a safe and secure working
environment. However, this does not only mean the need to meet a set of duties and
obligations, but also concerns the provision of information and training aimed at
bettering a worker's understanding of work-related risks and how to avoid them.

Thus, the employer must not only comply with general safety measures at work, but
should also identify potential workplace risks and develop a prevention plan.

Risk is defined as the probability of an action to result in negative consequences. In

order to reduce occupational hazards it is important to implement risk management
measures to recognise and manage risk on a companywide level.

Some key tenets of risk management are as follows:

- Identify those things which might pose a risk to the company and/or its workers
and prioritise preventative action according to severity and probability of
occurrence.
- Decide on the best way to manage the risk. This management may take the form
of one of several strategies:
o Prevention strategy: taking action to prevent the event from occurring.
o Reduction strategy: taking actions in order to reduce the likelihood or
severity of risk.

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o Transfer strategy: putting forth a series of measures that ultimately

intend to remove the risk.

The following are some of the obligations of an employer in regards to occupational

hazard prevention:

- The employer must ensure the protection of the workers who are particularly
susceptible to occupational hazards. This susceptibility can be a result of physical
characteristics or a wide range of disabilities.
- The employer is obligated to assess the perceived risk to workers who are
pregnant or have recently given birth. These risks can come in the form of
exposure to contaminants or agents, work processes, or working conditions that
may adversely affect the health of the worker or the child.
- The employer must carry out job evaluation for workers under 18 years of age in
order to determine which work roles or actions could potentially endanger their
health.
- In terms of workplace health and safety it is important that employers consult
employees so as to enable their participation in the formation of prevention
policy.

Some of the general subjects that should be considered when forming occupational
hazard prevention policy are:

- Safety and safety signage in the workplace.

- Work equipment and machinery.
- Load handling.
- Electricity.
- Fire prevention and protection.
- Major accidents and catastrophes.
- Classification, packaging and labelling of dangerous substances.

However, depending on the nature of the company and the different tasks performed
therein, the above list will vary and additions will be made.

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§ Worker's rights and obligations in occupational hazard prevention

The employees or workers must also meet a number of obligations in order to prevent
occupational hazards.

As such, in accordance with their training and following the instructions of the employer
they must:

- Responsibly utilise and handle machinery, tools, transportation, dangerous

substances and similar things they interact with over the period of their
employment.
- Properly use protective equipment provided by the company, and follow
instructions as provided.
- Immediately inform superiors and co-workers about protection and prevention
measures.
- Comply with obligations established by designated authorities regarding
occupational health and safety.
- Cooperate with the company to ensure safe working conditions.

It is important to note that non-compliance with these rules and regulations will be
considered an infringement of the labour relationship.

In order to ensure proper levels of health and safety in the working environment, all
workers are entitled to the following:

- Effective protection in health and safety measures at work.

- To be informed at all times to operate safely within their working environment.
- Practical and theoretical training for equipment and usage, safety systems, and
applied technologies.
- To be consulted and to participate in discussions about workplace safety.
- To interrupt work activity that poses a serious or imminent danger to the health
and physical integrity of the employees. In sum, giving precedence to safety over
productivity.
- To receive medical examinations.

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It is important to note that non-compliance can result in disciplinary actions and/or

sanctions.

If employer actions result in a breach of the abovementioned obligations, this is

regarded as criminal or civil liability.

These violations are recognised as having three forms based on severity.

- Minor offenses

Minor offenses are those that have minor implications to the health of the workers or
the workplace.

Some examples of minor offences are:

- Lack of cleanliness in the workplace that does not result in increased risk to
worker's health.
- Failing to report workplace accidents or workplace illnesses in a timely manner
to the authorised labour authority.
- Failure to report recommencement of work after a temporary pause due to
recognition of occupational hazards and subsequent risk to workers' health due
to one of the risks already mentioned.
- All breaches of the aforementioned rules put in place to mitigate occupational
hazards that do not represent serious threats to the workers' health.

- Serious offenses

Unlike minor offenses, serious offenses are those that have a negative impact on
workers' health and safety.

An example of some of these are the following:

- Failure to implement an occupational hazard prevention plan.

- Failure to inform and/or train workers in prevention methods.
- Failure to perform periodic inspections of working conditions, risk assessments,
or to review and update risk assessment strategies.
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- Exceeding exposure limits in the workplace.

- Failure to perform medical examinations or to report their results to workers, as
required by the regulations on prevention of occupational hazards.
- Failure to report workplace accidents or illnesses to the appropriate regulatory
body that are serious, very serious or fatal.
- The assignment of workers to jobs that are incompatible with their professional
skills or training, or their competence.

- Very serious offenses

Very serious offenses are those that are an imminent threat to the health and safety of
workers.

Some very serious offenses are:

- Failure to comply with child protection or pregnancy protection regulations.

- Failure to stop or pause work activity due to perceived risk when ordered to do
so by the governing authority.
- Preventing workers from stopping work activities that represent imminent or
serious threats to their health and safety.
- The assignment of workers to jobs that are incompatible with their personal
characteristics.
- Exceeding exposure limits to harmful agents that threaten the health of the
workers without taking the appropriate precautions to mitigate this risk.

The abovementioned offenses will each be accompanied by their respective sanction. A

link is provided in the annex concerning specific legislative rulings on offences and
sanctions.

Penalties are established as follows:

Offenses and infractions in terms of labour and employment relations, Social Security,
labour migration and foreign employment, as well as obstruction infringements will be
fined as following:

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MINIMUM LEVEL MEDIUM LEVEL MAXIMUM LEVEL

MINOR 60 to 125 euros 126 to 310 euros 311 to 625 euros
SERIOUS 626 to 1250 euros 1251 to 3125 euros 3126 to 6250 euros
VERY SERIOUS 6251 to 25,000 25,001 to 100,005 100,006 to 187,515

For offences in relation to prevention of occupational risks and hazards the following
sanctions apply:

MINIMUM LEVEL MEDIUM LEVEL MAXIMUM LEVEL

MINOR 40 to 405 euros 406 to 815 euros 816 to 2045 euros
SERIOUS 2046 to 8195 euros 8196 to 20,490 20,491 to 40,985
euros
VERY SERIOUS 40,986 to 163,955 163,956 to 409,890 409,891 to 819,780

The penalties in the matter of Social Security when they are derived from acts of
infringement and liquidation that refer to the same facts and are carried out
simultaneously, will automatically be reduced to 50% of their amount if the offender
shows his agreement with the liquidation, paying their contributions in the appropriate
term.

Infringements regarding cooperatives will be sanctioned with fines of:

MINOR SERIOUS VERY SERIOUS

377 to 755 euros 756 to 3790 euros 3791 to 37,920 euros

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