Jail-time Possible if Workplace Health and Safety Ignored
25 July 2014
TAURANGA: A leading employment lawyer is warning all New Zealanders to make health and safety a top priority in their workplace
to avoid being held accountable under new legislation due to be passed later this year.
The Health and Safety Reform Bill, currently before a select committee, is the biggest shakeup of its kind in more than
20 years.
Sharp Tudhope Lawyers’ Associate Shima Grice has made submissions on the Bill and on the draft health and safety
regulations on behalf of Freight Logistics Action Group (FLAG) which represents the Bay of Plenty’s freight, logistics,
forestry, farming and agriculture sectors.
She says all New Zealanders need to be aware of how the changes may affect them, not just some employees in particular
industries.
“Every single workplace in New Zealand will be required to comply with the new health and safety model, so everyone will
be affected,” she explains.
“This includes company directors, senior officers and individual employees – they will all have greater health and
safety duties.”
Grice says one important amendment to the Bill is that the person conducting a business or undertaking (known as a PCBU)
must eliminate risks to health and safety of workers and others affected by the work so far is “reasonably practicable”.
This means they must take into account the likelihood of a hazard or risk occurring, the degree of harm that might
happen as a result of that risk, ways of eliminating the hazard or risk, and the cost of eliminating it.
Failure to comply could lead to imprisonment: the Bill includes a new penalty system with a tiered liability structure
which features three categories of incident liability. The most severe breach – ‘reckless conduct’ – can result in a
$600,000 fine and/or five years’ imprisonment for an individual, or a $3 million dollar fine for a company if found
liable.
Even under the lesser category three penalty, senior company officers could still face a fine of up to $100,000 and
companies $500,000.
Company directors will also have duties under the new law, including proactively managing health and safety by being
personally involved and creating a health and safety culture within the company.
To help PCBUs manage hazards and risks, guidelines will be drafted by WorkSafe New Zealand, along with Approved Codes of
Practice (ACOPs). The government has also approved increased funding for inspectors to carry out education in the
workplace.
“Every year there are workplace deaths that, with appropriate health and safety precautions, could be avoided. The
purpose of FLAG’s submission to the select committee is to support the objectives of the Bill while ensuring that it
reflects the complex environment that exists in the freight logistics industry,” says Grice.
About Shima Grice
Shima is an Associate in Sharp Tudhope Lawyers’ litigation team. She joined the firm in 2008, and acts for clients in
all aspects of employment law, including drafting contracts and policies and advising on health and safety, as well as
acting on behalf of clients at mediation, in the Employment Relations Authority and before the Employment Court and
District Court.
ENDS