Strengthening the health and safety system to support governance
An article related to novel Police action which resulted in the seizure of assets from a business owner following guilty pleas and prosecution under the Health and Safety at Work Act 2015 with a sentence of home detention and a substantial fine. While the circumstances are somewhat unique, it is actions like these, and other prosecutions where companies and organisations often plead guilty rather than contest the charges, that make directors and board nervous.
That is not to dispute the fact that New Zealand workplace health and safety performance is poor relative to other countries we compare ourselves to, notably Australia and the United Kingdom.
Uncertainty and poor performance underpin the review of New Zealand’s health and safety system launched by the Minister of Workplace Relations and Safety, Brooke Van Velden.
The Institute of Directors (IoD) has submitted a series of recommendations that seek to clarify and enhance the governance role in workplace safety. This followed a range of engagements with members, including those with specific interest, experience and expertise in health and safety governance.
Key reform proposals and their impact on directors
Drawing on feedback from members, the IoD submission focused on:
- Clarifying the Distinction Between Governance and Operations: One central recommendation from IoD is to amend the Health and Safety at Work Act 2015 (HASWA) to provide a clearer division between governance and operational responsibilities. Current legal frameworks can blur this line, creating uncertainty for directors who are responsible for strategic oversight but not daily operational control. By clarifying that boards are accountable for risk management and safety culture – not hands-on management – directors can better focus on their core governance role without inadvertently overstepping.
- Promoting Collective Board Accountability: IoD proposes shifting the focus from individual to collective board accountability in health and safety governance. Under HASWA, individual directors are liable for ensuring health and safety. However, a collective approach, in addition to continuing individual director duties, would encourage directors to work as a unified board, drawing on diverse skills and perspectives to address safety risks comprehensively. This collaborative model not only strengthens oversight but also promotes continuous improvement across the organisation.
- Balancing Enforcement with Proactive Support: The IoD submission advocates for a regulatory approach that balances enforcement with proactive guidance and support for boards. The current enforcement model often focuses on penalties and prosecutions, which can deter open reporting of safety issues. By reducing penalties for minor or first-time breaches and placing greater emphasis on education, regulators could foster a culture where boards and management are more likely to address safety risks transparently and systematically.
- Encouraging Transparency in Regulatory Settlements: Greater transparency in WorkSafe and other regulator settlements of cases brought against companies, other organisations and their officers is another proposal in the submission. Currently, lessons from settlements and enforcement actions are often not widely shared, limiting opportunities for learning across industries. There is too much reliance on Court judgments as precedents. IoD proposes that regulatory agencies draw on settlements of prosecutions under HASWA to help directors and boards better understand health and safety regulatory expectations and adapt their practices.
- Strengthening Centralised Guidance for Consistent Health and Safety Practices: The IoD submission also calls for a more coordinated approach among agencies, including MBIE, WorkSafe, other health and safety regulators and ACC, to ensure consistent health and safety guidance and a systemic approach. A centralised approach could create a coherent framework that directors and regulators across different sectors can apply, ensuring that safety standards and expectations are clear, certain and consistent.
IoD’s submission can be found below.
