Workplace safety laws overhauled

The Government has introduced the Health and Safety at Work Amendment Bill to Parliament, marking the most significant proposed reform to New Zealand’s workplace safety regime in more than a decade.

Workplace Relations and Safety Minister Brooke van Velden says the reforms will lessen the cost and burden of compliance on low-risk businesses.

“The changes in this Bill will make it easier to run a business  by increasing certainty and removing fear, helping to ease costs of compliance and improve safety outcomes,” she says.

“For example, a small clothing shop would still need to provide first aid, emergency plans, and basic facilities such as suitable lighting, but wouldn’t need to have a psychosocial harm policy in place.”

She says the focus will be on critical risks and getting rid of unnecessary costs, making sure there is less paperwork and more clarity on what will make workplaces safe.

Employers, known as persons conducting a business or undertaking (PCBUs), and company officers are being urged to familiarise themselves with the proposed changes as the legislation progresses.

A key feature of the Bill is a rewritten purpose section that places “critical risk” at the heart of the law.

For the first time, the legislation explicitly prioritises risks most likely to result in serious harm or death, elevating this focus to the Act’s “main purpose.”

The Bill introduces a new definition of “critical risk,” covering hazards which could lead to death, serious injury, notifiable incidents or occupational disease. PCBUs will be required to assess these risks based on what they know, or reasonably ought to know, about their operations and associated hazards.

However, questions remain about how businesses will determine the likelihood of such outcomes in practice.

Under the reforms, organisations must prioritise managing critical risks over less serious ones, including allocating more resources and reviewing controls more frequently. Notably, failing to prioritise these risks will not itself be an offence, though it could still factor into broader enforcement actions.

Small businesses stand to see the most significant changes. The Bill creates a “safe harbour” for PCBUs with fewer than 20 workers, allowing them to focus their primary health and safety duties largely on critical risks, with limited exceptions such as worker welfare facilities.

Another major shift would allow compliance with other legislation to count as compliance with HSWA duties in certain situations – a move described as a “sea-change” that could simplify obligations for some sectors but raise concerns about regulatory gaps.

The Bill also clarifies officers’ due diligence duties, narrowing them to governance responsibilities and making the required steps more explicit. At the same time, it strengthens the role of Approved Codes of Practice (ACoPs), giving industry groups a greater role in developing practical guidance and, in some cases, deeming compliance with ACoPs as compliance with the law.

The legislation is expected to pass before Parliament rises in September, with changes taking effect shortly after.

Businesses are being encouraged to begin assessing their critical risks and reviewing governance processes now to prepare for the new framework.

More information: https://tinyurl.com/v2f8vw7j