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Here is a good Wikipedia article about Model Releases - from a US/Canada perspective.
A model release, known in similar contexts as a liability waiver, is a legal document typically signed by the subject of a photograph granting permission to publish the photograph in one form or another. The legal rights of the signatories in reference to the material is thereafter subject to the allowances and restrictions stated in the release, and also possibly in exchange for compensation paid to the photographed.
Publishing an identifiable photo of a person without a model release signed by that person can result in civil liability for whoever publishes the photograph.
Note that the photographer is typically not the publisher of the photograph, but sells the photograph to someone else to publish. Liability rests solely with the publisher, except under special conditions. It is typical for the photographer to obtain the model release because he is merely present at the time and "can" get it, but also because it gives him more opportunity to sell the photograph later to a party who wishes to publish it. Unless a photo is actually published, the need (or use) of a model release is undefined. And, since some forms of publication do not require a model release (i.e., news articles), the existence (or non-existence) of a release is irrelevant.
Note that the issue of model release forms and liability waivers is a legal area related to privacy and is separate from copyright. Also, the need for model releases pertains to public use of the photos: i.e., publishing them, commercially or not. The act of taking a photo of someone in a public setting without a model release, or of viewing or non-commercially showing such a photo in private, generally does not create legal exposure, at least in the United States.
The legal issues surrounding model releases are complex and vary by jurisdiction. Although the risk to photographers is virtually nil (so long as proper disclosures of the existence of a release, and its content is made to whoever licenses the photo for publication), the business need for having releases rises substantially if the main source of income from the photographer's work lies within industries that would require them (such as advertising). In short, photo journalists never need to obtain model releases for images they shoot for (or sell to) news or qualified editorial publications.
Photographers who also publish images need releases to protect themselves, but there is a distinction between making an image available for sale (even via a website), which is not considered publication in a form that would require a release, and the use of the same image to promote a product or service in a way that would require a release.
Regardless of legal issues, taking someone's picture without his/her permission may be considered impolite and may provoke a hostile response, so the photographer should take such matters into consideration and ask permission if appropriate.
[edit] Types of Releases
Adult Release: This is the form most commonly referred to as a "model release". The language of this release is intended for use by models over the age of 18 (the age of majority)
Minor Release: This variant of the model release contains language referring to the model (who is a minor) in the third-person, and required signature by a parent of other legal guardian of the model. A release which is not signed by a parent or guardian affords no legal protection to the photographer.
Group Release: This is a modified version of the Adult Release which includes additional signature lines to accommodate use by multiple models or subjects in a single image.
Not sure how other countries are governed, perhaps some others can comment if they know.
Model Release Wikipedia
A model release, known in similar contexts as a liability waiver, is a legal document typically signed by the subject of a photograph granting permission to publish the photograph in one form or another. The legal rights of the signatories in reference to the material is thereafter subject to the allowances and restrictions stated in the release, and also possibly in exchange for compensation paid to the photographed.
Publishing an identifiable photo of a person without a model release signed by that person can result in civil liability for whoever publishes the photograph.
Note that the photographer is typically not the publisher of the photograph, but sells the photograph to someone else to publish. Liability rests solely with the publisher, except under special conditions. It is typical for the photographer to obtain the model release because he is merely present at the time and "can" get it, but also because it gives him more opportunity to sell the photograph later to a party who wishes to publish it. Unless a photo is actually published, the need (or use) of a model release is undefined. And, since some forms of publication do not require a model release (i.e., news articles), the existence (or non-existence) of a release is irrelevant.
Note that the issue of model release forms and liability waivers is a legal area related to privacy and is separate from copyright. Also, the need for model releases pertains to public use of the photos: i.e., publishing them, commercially or not. The act of taking a photo of someone in a public setting without a model release, or of viewing or non-commercially showing such a photo in private, generally does not create legal exposure, at least in the United States.
The legal issues surrounding model releases are complex and vary by jurisdiction. Although the risk to photographers is virtually nil (so long as proper disclosures of the existence of a release, and its content is made to whoever licenses the photo for publication), the business need for having releases rises substantially if the main source of income from the photographer's work lies within industries that would require them (such as advertising). In short, photo journalists never need to obtain model releases for images they shoot for (or sell to) news or qualified editorial publications.
Photographers who also publish images need releases to protect themselves, but there is a distinction between making an image available for sale (even via a website), which is not considered publication in a form that would require a release, and the use of the same image to promote a product or service in a way that would require a release.
Regardless of legal issues, taking someone's picture without his/her permission may be considered impolite and may provoke a hostile response, so the photographer should take such matters into consideration and ask permission if appropriate.
[edit] Types of Releases
Adult Release: This is the form most commonly referred to as a "model release". The language of this release is intended for use by models over the age of 18 (the age of majority)
Minor Release: This variant of the model release contains language referring to the model (who is a minor) in the third-person, and required signature by a parent of other legal guardian of the model. A release which is not signed by a parent or guardian affords no legal protection to the photographer.
Group Release: This is a modified version of the Adult Release which includes additional signature lines to accommodate use by multiple models or subjects in a single image.
Not sure how other countries are governed, perhaps some others can comment if they know.
Model Release Wikipedia
So I am no lawyer either but this is what I understood in Australia also. However what consitutes the publisher is a little grey. I believe the website is actually the publisher and not the person who uploaded the image. 
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