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Important Changes in Health and Safety Law

Important Changes in Health and Safety Law. Reform Initiatives. Plan for improved service delivery by MBIE. Legislative Reform Health and Safety at Work Bill. Based on the Australian Model Work Health and Safety Act. Object is to ensure workers’ health and safety

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Important Changes in Health and Safety Law

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  1. Important Changes in Health and Safety Law

  2. Reform Initiatives Plan for improved service delivery by MBIE
  3. Legislative ReformHealth and Safety at Work Bill Based on the Australian Model Work Health and Safety Act. Object is to ensure workers’ health and safety New offences and increased penalties New duty to take “reasonably practicable steps”
  4. Health and Safety at Work BillFeatures A broader duty on “persons conducting a business or undertaking” A presumption in favour of the highest level of protecting workers from harm Comprehensive regulation of major hazard facilities Increased interaction between new regulator, other government agencies, and work places.
  5. Health and Safety at Work BillFeatures Increased worker consultation and involvement in health and safety The new regulation will be underpinned by regulations, approved codes of practice, and guidance materials New due diligence duty on directors and officers
  6. Health and Safety at Work BillTimeframe WorkSafe currently being established and will be operational in December 2013 The Bill will be introduced to Parliament in December 2013 and enacted by the end of 2014 A funding review of WorkSafe will be conducted in December 2015
  7. Implications of changeWhat will be required? HSEA requires all practicable steps to be taken to safeguard health and safety All steps that it is reasonably practicable to take in the circumstances having regard to prescribed matters MHSL imposes a test of reasonably practicable steps A step which is, or was at a particular time, reasonably able to be done taking into account prescribed matters
  8. Implications of changeWho will be affected? HSEA contains separate but parallel obligations for different duty holders Australian MHSL imposes a single obligation on all “persons in control of a business undertaking” Increased emphasis on upstream suppliers, e.g. designers, manufacturers, and suppliers of plant, substances, and structures Additional due diligence obligation on those in governance roles
  9. Implications of changeDue diligence role for those in governance Individual liability for directors and officers under the HSEA As an officer, director, or agent who authorised, assented to, acquiesced in, or participated in a corporate failure More direct liability under the MHSL Officers must exercise due diligence to ensure the PCBU complies with its obligations Due diligence requirements prescribed by statute
  10. Implications of changeDue diligence role for those in governance Institute of Directors Guideline
  11. Implications of changeEnforcement : Penalties
  12. Implications of changeEnforcement : Penalties Changes will drive the new regime to be similar to Australia Introduction of the three-tier system Reckless conduct Exposure to risk of death or serious harm Other failures Individual fines proposed to range from $50k to $600k, with increase in maximum prison term to 5 years Fines will also dramatically increase for corporates (up to $3m)
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