Government aiming to reduce red tape, overcompliance among business leaders
The New Zealand government has announced a series of reforms aimed at ensuring the country's work health and safety legislation is fit-for-purpose for businesses.
Workplace Relations and Safety Minister Brooke van Velden announced throughout this week the reforms aimed at reducing red tape and the risk of overcompliance among leadership.
Van Velden said on Wednesday that the government has agreed to clarify the distinction between governance and operational management health and safety responsibilities to reduce directors' fear and risks of overcompliance.
"I am announcing a change in the legislation to specify that the day-to-day management of health and safety risks is to be left to managers so that directors and boards can focus on governance and the strategic oversight of the business," the minister said in a statement.
"Making this distinction will enhance the effectiveness of health and safety governance and the outcomes we can achieve in the health and safety system."
The reform comes after the minister's public consultation discovered a lack of clarity among business leaders when it comes to their health and safety duties.
"Feedback shared by many is that there is overcompliance as many directors think they need to do more than they should, and directors and management are also duplicating work," van Velden said.
The Employers and Manufacturers Association (EMA) welcomed the announcement in a statement saying it will assist in the "maturing of health and safety management practices" in businesses.
It will also eliminate the culture of fear and costly overcompliance in many boards across organisations.
"Managers are best placed to understand and oversee health and safety in their workplace," said Paul Jarvie, EMA manager of employment relations and safety, in a statement. "This lets directors and boards focus on their governance responsibilities of setting strategic frameworks, defining policies, and ensuring accountability."
Meanwhile, van Velden announced earlier this week that Cabinet has agreed to cut through the "unnecessary red tape" for small, low-risk businesses when it comes to health and safety.
"These businesses will only have to manage critical risks and provide basic facilities to ensure worker welfare," she said.
"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."
According to the minister, the change will allow businesses and workers to focus the system on critical risks and getting rid of unnecessary costs, ensuring that there is less paperwork and more clarity on what will make their workplaces safe.
The other changes that Cabinet has agreed to are:
Reduce tick-box health and safety activities that do not protect workers from harm
Address over-compliance due to overlapping health and safety duties by clarifying the boundaries between the Act and regulatory systems that already manage the same risk
Cut compliance costs by reducing notification requirements to the regulator to only significant workplace events, such as deaths, serious injury, illness, and incidents
"These changes are just the start of the Government's reform programme. I will be seeking Cabinet decisions in the coming months that will further improve WorkSafe and address sector-specific pain points," she said.
Jarvie said the changes show that the government has listened to the business community.
"Reducing the red tape faced by small businesses will allow them to focus on the things that matter," he said in a separate statement. "While this change in focus will not reduce safety in the workplace, it should reduce time-consuming paperwork and 'tick-box' exercises that have little to no direct impact on wellbeing at work."
However, the Business Leaders' Health and Safety Forum is cautious in welcoming some of the changes announced by van Velden.
"Some of the changes the Minister has flagged are welcomed by the Forum – particularly the focus on critical risks so that businesses focus on the areas of greatest harm to our workers," said Francois Barton, CEO of the Forum, in a statement.
According to the Forum, the minister has yet to address how to reduce harm rates and their cost on people, businesses, and the economy.
"While an improved focus on critical risk is a step in the right direction, unfortunately today's announcement makes no mention of New Zealand's poor record, nor does it put forward a much-needed comprehensive plan to improve our performance as a country," Barton said on Monday.
Previous findings from the Forum revealed that harm rates in New Zealand cost the country $4.9 billion in 2023. Employees in the country are also 60% more likely to be killed at work than in Australia.
"Growing the economy and reducing the avoidable burden of harm to our workforce go hand in hand. If we closed the gap with Australia tomorrow, we would save $1.4 billion," Barton said.
