Government Moves to Ease Health and Safety Burden on Company Directors

"Throughout our discussions, it became clear that many directors and senior executives are overly burdened by compliance due to uncertainties in the current legislation," Minister van Velden stated.

In a significant move to streamline health and safety responsibilities within New Zealand businesses, Workplace Relations and Safety Minister Brooke van Velden today announced reforms designed to clearly separate the governance roles of company directors from operational management duties.

These legislative amendments come as a response to widespread concerns among business leaders, raised during extensive nationwide consultations and roadshows, regarding confusion and the resulting excessive compliance under the existing Health and Safety at Work Act. Company directors, particularly within small to medium enterprises, have repeatedly expressed uncertainty over the extent of their responsibilities, leading many to undertake more detailed operational duties than necessary.

"Throughout our discussions, it became clear that many directors and senior executives are overly burdened by compliance due to uncertainties in the current legislation," Minister van Velden stated. "There has been a concerning level of duplication, with directors inadvertently performing operational tasks already being handled effectively by managers."

The new legislation aims explicitly to delineate roles, assigning strategic oversight and governance clearly to directors and boards, while operational management—including the day-to-day management of health and safety risks—will rest squarely with managers. The Government anticipates that this clarification will significantly enhance the efficiency and effectiveness of health and safety management practices across New Zealand businesses.

"By clearly distinguishing governance responsibilities from operational tasks, we enable directors to focus more strategically on oversight and policy direction, thereby improving governance practices overall," Minister van Velden emphasized.

This initiative aligns with commitments outlined in the ACT-National Coalition Agreement to reform health and safety legislation. The changes represent a critical component of broader health and safety system improvements aimed at reducing unnecessary compliance burdens and enhancing overall business productivity and safety outcomes.

Minister van Velden further confirmed that ongoing efforts continue to finalize the specifics of this legislative update. "We are committed to ensuring that these changes are robust, practical, and fit-for-purpose, addressing the actual needs of businesses," she noted. "I will soon return to Cabinet with detailed proposals to gain agreement and progress this important legislative amendment."

Business advocacy groups have broadly welcomed the announcement, emphasizing the importance of clear legal frameworks to enhance both compliance and efficiency. The reforms are expected to be introduced in Parliament later this year, marking a significant evolution in New Zealand's approach to workplace health and safety governance.