What Happens If a Business Fails a Pre-Start Health and Safety Review?

Pre-start health and safety review is a mandatory assessment under Ontario Regulation 851 (O.Reg 851) for businesses operating in industrial settings.

Workplaces must comply with safety regulations before introducing certain equipment or processes. However, not all businesses meet the Ontario PHSR standards on the first attempt. Failing this review can lead to operational delays, regulatory penalties, and increased employee risks.

Understanding why businesses fail, and the steps to address compliance issues can help avoid unnecessary disruptions.

Common Reasons Businesses Do Not Meet Ontario PHSR Standards

Failing a pre-start health and safety review can result from multiple factors, often linked to overlooked safety concerns. Some of the most common reasons include:

1. Inadequate Machine Guarding

Many businesses fail a PHSR in Ontario due to missing or improper machine guarding. Any equipment with exposed moving parts must have proper safeguarding measures to prevent injuries.

2. Non-Compliant Electrical Systems

Electrical hazards are often a major concern in industrial workplaces. Failure to meet standards related to lockout/tagout procedures, emergency stop mechanisms, or wiring configurations can lead to review failure. Businesses need to confirm that all electrical components align with safety codes before undergoing assessment.

3. Improper Storage of Hazardous Materials

Strict storage and handling regulations must be followed if a workplace handles chemicals, flammable substances, or hazardous materials. Inadequate containment systems, ventilation issues, or incorrect labeling can trigger non-compliance under Ontario PHSR standards.

4. Lack of Documentation and Safety Procedures

Even if a workplace meets safety standards physically, failure to provide documented safety procedures, training records, or compliance reports can result in a review failure. Businesses must maintain accurate records demonstrating adherence to safety protocols.

5. Structural Deficiencies

Workplace structures such as mezzanines, guardrails, and platforms must comply with safety codes. Issues related to Rack and Stacking structure, load capacity, or missing barriers are common reasons for failing a pre-start health and safety review.

The Consequences of a Failed Pre-Start Health and Safety Review

Failing a pre-start health and safety review can impact business operations in multiple ways, leading to delays, legal consequences, and financial losses.

1. Work Delays and Operational Shutdowns

If a workplace does not pass a PHSR in Ontario, specific equipment or production processes cannot be used until and unless compliance is met. This can cause significant downtime, affecting productivity and project timelines.

2. Legal and Regulatory Penalties

Businesses that fail to meet safety compliance standards may face operational shutdowns, penalties, and potential liability risks as enforced by the Ministry of Labour, Training and Skills Development.

3. Increased Liability Risks

Operating without compliance increases the likelihood of workplace injuries. If an incident occurs in a facility that failed a pre-start health and safety review, the business could face lawsuits, higher insurance premiums, and reputational damage.

How to Address Compliance Issues Before a Reassessment

Businesses failing a pre-start health and safety review should take immediate steps to address non-compliance before requesting a reassessment. The following actions can help streamline the process:

1. Conduct an Internal Safety Audit

A thorough review of all safety hazards should be conducted internally. Identifying gaps in PHSR compliance early allows businesses to address them proactively before reassessment.

2. Work with a Safety Compliance Consultant

Engaging with an expert can help businesses interpret compliance requirements and implement necessary corrections. A consultant familiar with pre-start health and safety review regulations can offer guidance on corrective measures.

3. Update Safety Documentation

If documentation was a factor in the initial failure, businesses should make sure that all records, safety procedures, and training logs are maintained adequately before undergoing another review.

4. Implement Corrective Actions Promptly

Delays in fixing safety issues can prolong the reassessment process. Addressing required changes as soon as possible minimizes disruptions and prepares the workplace for the next review.

Conclusion: Preparing for Success with a PSR Assessment

Failing a pre-start health and safety review can be disruptive, but businesses that take immediate corrective action can prevent long-term consequences. Companies can proactively address compliance gaps and avoid work stoppages, legal penalties, and potential liability issues.

SAFE Engineering Inc. delivers expert guidance for businesses navigating compliance challenges. 

Contact the team today to understand the necessary steps for a smooth PSR assessment and to keep workplace operations running safely.