MHK Chartered Accountants Comment On New H&S At Work Act

Changes to health and safety (H&S) laws are a step closer, with a select committee recently reporting its recommendations back to Parliament. The Bill is expected to be passed now; however there will be a few months before it comes into effect. During this time government has stated it will provide further guidance to help businesses understand what the new law means for them, so people will have plenty of time to prepare.

Ian Malcolm, Managing Director of MHK Chartered Accountants, broadly supports the new Act despite the increased responsibility and workload it places on businesses and individuals.  He points out that the aim of the law is to reduce the number of New Zealanders killed or hurt at work. In New Zealand on average 73 people die on the job each year and one in ten is harmed. These numbers are significantly higher than in countries such as Australia and the UK, and must come down.

He states that this doesn’t mean small businesses will necessarily face a lot of new compliance costs. For many small businesses, little will change – especially if they already take a considered approach about how to keep those in their workplace safe and healthy.

The new law says businesses need to take reasonably practical steps to manage these risks. How they do this will depend on how seriously someone could get hurt, the chance of an accident happening and how much control they have over preventing it. The new laws are expected to come into effect in April 2016, to be confirmed once the Health and Safety at Work Act is passed.

Mr Malcolm comments that, “Under the new law, the company itself will be the Person Conducting a Business or Undertaking (PCBU). This means it will have overall responsibility for the health and safety of its staff and others affected by its work.  The company has to discuss health and safety matters with its staff, and in practice it will usually do this through its managers.  And directors will be required to make sure the company complies with its obligations.

“And workers will also have to take reasonable care for the health and safety of themselves and others, and follow the company’s policies and instructions.”

So ahead of the law change, it’s a good opportunity to review and, if needed, revise how a business manages any critical risks – those that could cause illness or injury serious enough to keep someone off work.

MHK Chartered Accountants specialise in legally minimising all types of taxation obligations and offer a no-obligation discussion free of charge.  For more information on this, and MHK Chartered Accountants, please go to http://aucklandaccountant.net.nz  .