New Bill Proposes Significant Changes to Health and Safety
The Health and Safety at Work Amendment Bill (HSWA Bill) has been introduced to Parliament, intended to reduce compliance costs while refocusing the system on “critical risks”.
In this article we explain the key proposed changes and what this means for businesses.
Focusing the System on Critical Risks
The Bill seeks to change the purpose and focus of health and safety legislation from a system that requires all risks to be managed to a system focusing on critical risks.
The Bill also presents a new definition for “critical risks” across two categories:
- Hazards already subject to strict specialist regulatory frameworks — for example, asbestos, hazardous chemicals, mining operations, and major hazard sites — along with other common workplace risks that are already covered by existing regulations.
- Hazards likely to result in death, notifiable illness or injury, notifiable incident or occupational disease.
Proportional Duties for Small PCBU’s
The Bill proposes that small PCBUs (less than 20 workers) will only need to manage critical risks, (rather than all workplace risks), while still meeting the minimum standards for worker wellbeing.
All other PCBUs will be required to prioritise critical risks over other risks.
Prioritising a critical risk means managing, monitoring, reviewing and revising the critical risk more frequently. PCBUs will also be able to apply a higher proportion of management resources to critical risks over other risks.
Exception for Earthquake‑Prone Buildings
The Bill creates a specific carve‑out for earthquake‑prone buildings. It states that if a building owner is meeting their obligations under the Building Act 2004, the PCBU does not need to take additional steps in relation to the seismic risks associated with that building, or any affected part of it, that forms part of the workplace. This includes actions such as ordering an evacuation, unless an actual emergency involving the building is underway.
Officer Duties
Under the HSWA officers, such as directors, partners, CEOs (and others with significant influence over the management of the PCBU) have due diligence obligations.
The Bill proposes changes to the scope of officers’ due diligence obligations. Specifically, it clarifies that where a person holds more than one position (such as being both a director and a chief executive), their due diligence duty applies only to their capacity as an officer. The Bill also revises the current due diligence criteria by introducing a defined and comprehensive set of requirements.
Regulators Functions
The Bill also proposes changes to WorkSafe’s functions (and designated regulators, for example Maritime NZ and Civil Aviation Authority) to the following core functions:
- Provide guidance, advice, and information on compliance with relevant health and safety legislation;
- Develop, review, and recommend approved codes of practice (ACOP) and safe work instruments; and
- Monitor and enforce compliance with relevant health and safety legislation.
ACOPs Reform
ACOPs set out standards for duty holders compliance with the HSWA and regulations by providing detail on how to meet the standard of “reasonably practicable” in managing specific risks. Up to this point, development of ACOPs has been restricted to WorkSafe, but the intent is to expand this to encompass ACOPs prepared by employer and industry representatives. Draft ACOPs will then be sent to WorkSafe for review before being approved by the Minister. ACOPs will remain non-binding.
Notifications
The Bill seeks to add clarity around the duty to notify the regulator of certain serious incidents by broadening the existing definitions and incorporating specific examples — such as significant head injuries, serious eye trauma, major burns, and spinal injuries — to help clarify when the threshold for notification is met.
Key Takeaways for Employers
Government has signalled an intention to progress these changes with the current term, however the Bill is at early stages and will need to be considered by a select committee before progressing. We will report on its progression and any proposed changes.
In the meantime, the existing provisions of the HSWA continue to apply and all duty holders should comply with these obligations until any changes become law.
Disclaimer: We remind you that while this article provides commentary on employment law topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek guidance from your employment lawyer for any questions specific to your workplace.
