Event recap: Health & Safety Update with Minister Brooke van Velden

On Wednesday 9 July, Workplace Relations and Safety Minister Hon Brooke van Velden joined us to share updates on recent health and safety reform decisions, their impact on businesses, and what to expect before the end of the Parliamentary term.

Health and Safety Reforms

Minister van Velden outlined comprehensive reforms to New Zealand's health and safety system, representing the most significant changes since the current act was passed in 2015. The reforms aim to shift focus from paperwork to practical safety measures.

Key elements of the reforms include:

• Streamlining compliance for small, low-risk businesses
• Clarifying legal responsibilities
• Modernising guidance documents
• Reducing unnecessary regulatory burdens
• Transforming WorkSafe from primarily an enforcer to an organisation that engages constructively with businesses

The Minister emphasised that these changes are not about deregulation but smarter regulation, enabling businesses to focus on risks that matter most. She noted that the system had become too focused on paperwork, too risk-averse, and too uncertain, particularly for small businesses.

The Minister highlighted that the reforms were developed after extensive consultation with businesses and workers nationwide. She acknowledged that businesses are best placed to understand and manage their own risks, not government agencies.

WorkSafe Transformation

The Minister discussed significant changes to WorkSafe's operations and accountability:

• New structure for WorkSafe's funding to improve transparency and accountability
• Specific appropriations for enforcement and guidance activities
• Removal of outdated guidance documents
• Introduction of a "road cone hotline" to address over-compliance in temporary traffic management
• Refocusing WorkSafe on critical risks that can lead to death or serious injury

The Minister expressed concern about WorkSafe's accountability, noting that a recent review had raised red flags about the organisation's progress on reforms. She emphasised the need for WorkSafe to be more transparent about how levy money is spent.

Employment Relations Amendment Bill

The Minister introduced the Employment Relations Amendment Bill, which aims to enhance labour market flexibility. Key elements include:

• Providing certainty to contractors by clarifying the distinction between employee and contractor status
• Introducing an income threshold for unjustified dismissal personal grievances to make it easier for employers to release poorly performing senior staff
• Strengthening consideration of employee behaviour in personal grievance processes

The Minister expressed concern about the "grievance industry" where employers often settle claims before they reach the Employment Relations Authority due to fear of the process, even when they believe they haven't done anything wrong.

Holidays Act Replacement

The Minister discussed plans to replace the Holidays Act with a more intuitive system:

• Moving to an hours-based accrual system that is easier for both employers and employees to understand
• Ensuring part-time employees receive proportionate allocation of leave entitlements
• Clarifying that the government is not proposing to reduce sick leave from 10 to 5 days, but rather implementing a prorated system

The Minister emphasised that the current act is difficult for both employers and employees to understand, often requiring complex calculations to determine entitlements.

Next Steps

• The Minister will announce specific details about small, low-risk business definitions the following week
• Further announcements on sector-specific relief from burdensome health and safety regulations are forthcoming
• Technical work on the Holidays Act replacement is ongoing, with more details to be released in coming months
• The government is examining how to streamline pre-qualification requirements for government contracts
• Business Canterbury will host an Employment Relations Forum on 15 July with Chief Judge Christina Inglis

Challenges

• Defining what constitutes a "small, low-risk" business for regulatory purposes
• Balancing the focus on immediate safety risks with longer-term occupational health concerns
• Addressing the "grievance industry" around personal grievances while ensuring worker protections
• Ensuring WorkSafe's accountability and effectiveness in its regulatory role
• Managing the complexity of pre-qualification requirements across different agencies and councils