Chronic Unease Presented by Scott Ratuki Partner First reading 13 March 2014 Submissions received over 230 Select Committee Report 24 July 2015 Will come into force ID: 565029
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Slide1
HEALTH AND SAFETY REFORM BILL“Chronic Unease”
Presented
by
Scott
Ratuki
PartnerSlide2
First reading – 13 March 2014Submissions received – over 230
Select Committee Report – 24 July 2015
Will come
into force on 4 April 2016Will be known as the Health and Safety at Work Act
Parliamentary ProcessSlide3
Pike River Mine disaster and Royal Commission of Enquiry – a catalyst for reform
Creation of Worksafe
NZ with more resources
115 – 151 inspectorsAiming for 200 by 2016
75 people killed each year600 – 900 deaths from work related diseases
200,000 ACC claimsEstimated overall costs $3.5 billionSlide4
Risk based, not injury basedFocused on prevention
Safe Work Australia last year had 82,000 visits to check on work practices55,000 responses to injury events
Our reforms based on the Australia Model LawsSlide5
Primary Focus is on securing the health and safety of workers and providing a high level of protection against harm to their health, safety and welfare from hazards and risks arising from work
.Slide6
Enforcement
Company
Individual as an officer
Individual as a worker
Category
1
(Reckless conduct)
$3 million
$600,000
OR five years in jail,
OR both
$300,000
OR five years in jail,
OR both
Category 2
(Failure to comply with a duty exposing to risk of death or serious injury)
$1.5 million
$300,000
$150,000
Category 3
(Failure to comply with a duty)
$500,000
$100,000
$50,000
Category
4
Breaching other specific requirements – various fines of lesser amounts
e.g. section 52 requirement to maintain records of notifiable events - $25,000
Four categories of offencesSlide7
Key Changes and Definitions
PCBU
Person
conducting a business or undertakingPrimary duty to ensure as far as is reasonably practicable the health and safety of workers at work
Currently duties are on these controlling a place of work
The definition of PCBU is wider than “employer”“Business” – a business is usually an enterprise conducted with a view to making profit and having a degree of organisation, systems and continuity.
“Undertaking” – an undertaking may have some degree of organisation, systems and continuity, but it is not profit making or usually commercial in nature.Slide8
PCBUs
PCBU is not:
A worker
An officer of the business or undertaking
a volunteer organisation
An occupier of a home employing someone in the homePCBU can not be for profit – if it hires staff e.g. admin staff will be a PCBUSlide9
Work
What is “work” helps inform when it is a business or undertaking
Involves physical or mental effort
Activities for which people are usually paid
Activities that are part of a process
Where control is exercised
Less likely where
it is purely domestic, recreational or social
the activity is ad hoc or unorganisedSlide10
The organisation is a
PCBU
and
will owe duties
, including to all its workers, (paid or volunteers)
The organisation is a
VOLUNTEER ASSOCIATION
. It is not a
PCBU
and does not owe any duties under the Bill.
PCBU or Volunteer Association?
Are you and all others involved in the business or undertaking acting on a voluntary basis?
Are you working for a community purpose?
Do any of you employ someone to carry out work for the business or undertaking?
NO
NO
NO
YES
YES
YESSlide11
Primary duties all on PCBUs who:Manage or control a workplace
Manage or control fixtures, fittings or plant at workplaces
Design plant, substances, or structures
Import, supply, install, construct or commission plant or structures
Duties also fall on officers, non-officers and workers
DutiesSlide12
Workers
Workers are a wider group than employees
Employees
Contractors or subcontractors
Employees of a contractor or subcontractor
Outworker
Apprentices or trainees
Persons undertaking work experience or work trials
Volunteer workersSlide13
Duty holders are required to comply with key principles:Eliminate risks as far as is reasonably practicable
“Reasonably practicable” means what is or was reasonably able to be done at a particular time to ensure health and safety, taking into account and weighing up all reasonable matters”Replaces the concept of “all practicable steps”
If you cannot eliminate, then
minimise. Gone is the other option – to isolate
Key PrinciplesSlide14
Duties of Officers
If a PCBU has a duty or an obligation under the Act, an officer must exercise due diligence to ensure the PCBU complies
Gone is Section 56 which placed duties on officers only when officers participate in health and safety management
Duty is now to be proactiveSlide15
If PCBU is:a company, then the directorsa partnership, then any partner
a body corporate or an unincorporated body or person in a role comparable to a director
a board then its board members
Includes any other person who makes decisions that affect the whole or a substantial part of a business or undertaking, i.e. Chief
Executive, Chairperson etc. Legislation has made it clear it is someone with a “very senior governance role” Slide16
Acquire and keep up to date knowledge of health and safety matters
Gain an understanding of the risks and hazards associated with the conduct of the business
Due Diligence duty
Ensure the PCBU has appropriate resources and processes for responding to information regarding incidents, hazards and risks in a timely way
Ensure the PCBU has, and uses, appropriate resources and processes
Ensuring the PCBU has, and implements processes for complying with duties under the legislation
A Main Focus of the LegislationSlide17
Practical Considerations for Officers
Policy and Planning
Delivery of Objectives
Monitoring the PCBU’s Policies
Effective Review at Board LevelSlide18
In Practice
Cannot insure for penalties
Cannot transfer a duty or contract out of a duty
Strong paper trail of compliance steps essential
First thing
WorkSafe
inspectors will look at
Proactivity, not acquiescenceSlide19
Delivery of Objectives
Does your health and safety management system reflect best practice? Outside appraisal
Systems for risk identification
Consideration of full range of risks
Keep tabs on organisational change
Sufficiency of processes when there is an emergency
Right people at all levels of delivery
Sufficiency of plant and equipment