HSE Amendment Act - An Analysis (Apr 03)

After the hype: Let's get down to a level headed analysis of this new regime.
How does it all fit together from a systems point of view? Follow the links below . . .

Table of Contents:

Summary

This legislation has caused considerable interest, primarily due to the fact that stress and fatigue have been formally recognized as workplace health and safety issues. The opportunity has also been taken to introduce new requirements in the following broad areas:

·        Who is covered by the Act
·        Employee participation
·        Wider enforcement and tougher penalties

It is important to understand that the main mechanisms of the original Act have not changed, with the exception of employee participation. This means that employers with existing OHS systems, procedures and policies simply need to incorporate the new requirements into their systems. If the present system already includes employee participation, it may not even be necessary to change that.

The following analysis tabulates the changes with interpretations and suggested actions required by employers.

If you wish, you can use the short cuts to the item of your choice:

All Practicable Steps

Insurance

Serious Harm - Refusal to Work

Employee Obligations

Loaned Employees

Stress and Fatigue

Enforcement

Participation system

Suppliers of Plant

Hazard Notices

Penalties

Volunteers

Information - Access To

Protective Equipment

List of other amendments

Infringement Notices

Safety Representatives

 


Key Changes Interpretation Suggested Action
Stress and fatigue have caused a lot of debate. These have been specifically recognized as harm and hazard respectively.

Many people are confused about this. The issue has taken on folklore status but the only thing to change has been the inclusion of stress in the interpretation of harm and the inclusion of fatigue in the interpretation of hazard.

The framework for dealing with these issues remains the same: identify the hazards, then eliminate, isolate or minimise.

Stress is a normal part of life but inability to cope affects some people

Stressed and fatigued employees are not effective employees.

  • Be open about stress and fatigue. Initially, discuss it at safety meetings and make the topic a legitimate concern.
  • Identify potential stressors/fatigue sources.
  • Encourage employee reports. Include causes on the hazard register and take steps to eliminate, isolate or minimise the risk, as you would for any hazard.
  • Treat this as an opportunity. Stressed and fatigued employees are not productive and may even be disruptive.
  • Take the approach that stress is normal. It is the point at which an individual perceives they cannot cope that makes it harmful. Some people have lower tolerance than others but they may also be your best and most creative people.
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Key Changes Interpretation Suggested Action
Definition of "all practicable steps" amended to clarify that it only applies to circumstances that a person knows or "ought reasonably to have known about". This is important in the context of stress and fatigue, which are difficult to predict.
  • If you know of any causes of increased stress or fatigue, you must respond by managing the risk.
  • On the other hand, this gives some protection for instances that come out of left field.
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Key Changes Interpretation Suggested Action
Application of the Act to volunteers and persons on job training or work experience

This applies to persons who do not expect or receive (material) reward for work and are there with the employer's knowledge and do it on an ongoing basis and the work is an integral part of the business.

[ The Act specifically includes those on job training or work experience. ]

Essentially, the above persons are now treated by the Act as if there is an employer/employee relationship. This includes employee obligations.

The Act excludes volunteers who are fundraising or assisting sports/ recreation clubs or off site work for educational institutions

The Act places a general duty of care on employers for ALL volunteers, regardless of exclusions.

The general duty of care (left) is not directly enforceable but OSH may get involved.

  • Quite simply, if you employ volunteers under the conditions listed at left, or people on work experience, your OHS system must include them, (except as far as the participation system is concerned).
  • If your OHS system is OK, do nothing differently except to include these people as if they were employees.
  • In turn, the volunteers now have to comply with Section 19 of the Act, which essentially requires them not to permit harm to themselves or others and to use protective equipment.
  • People doing fundraising or work for recreational clubs and schools are excluded.

 

Key Changes Interpretation Suggested Action
Sharing or loaning of employees clarified in terms of responsibilities. If you loan or borrow employees, there are new obligations even if there is no contract in place.
  • If you loan, you must make sure your employee is capable of the work.
  • If you are the borrower, the employee must be treated as if they are your employee
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Key Changes Interpretation Suggested Action
Employers to ensure employees use protective equipment. Previously, the requirement was to "make available". Now, you must follow through to enforce the use of the equipment.
  • You must clearly take an active, rather than passive role. If there is an identifiable hazard, for which the required method of protection includes protective equipment, then you are obliged to enforce it [ and employees are obliged to comply, see below ]
  • You cannot pay an allowance in lieu of this obligation, nor require employees to provide their own equipment, however, they may provide their own equipment voluntarily if you deem it suitable.
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Key Changes Interpretation Suggested Action
Employee obligations strengthened in regard to protective equipment. Employees must use protective equipment when provided. You always could require the use of PPE but this spells it out.
  • You can now point to some specific wording when enforcing the use of PPE.
  • Employees are now clearly in breach of the Act if they fail to use PPE without good reason.
  • You cannot pay an allowance in lieu.
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Key Changes Interpretation Suggested Action
Employers must provide "ready access to" health and safety information

Strengthens the requirement to provide information on e.g. the effects of certain hazards and the means of prevention.

In particular, safety representatives must be provided with information on health and safety systems and OHS issues.

  • Ensure relevant information such as Material Safety Data Sheets, Safe Operating Procedures and other relevant safety/health information is not only on site but "readily available". It would not, for example be considered "readily available" if stored in the top drawer of the MD's office.
  • Clearly, there is a link with training materials and the active delivery of training.
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Key Changes Interpretation Suggested Action
Duties of persons supplying plant for use in a place of work.

This section confirms requirements already spelled out in the HSE Regulations.

Plant can be almost any equipment.

Unless the plant is bought "as is", the supplier (includes hire, lease, loan, installation), must ascertain the intended use (includes any reasonably foreseeable use) and ensure the plant is safe for this use.

An installer who did not supply the plant is not under the same obligation.

  • Where there are multiple uses for plant, it will be necessary to try to anticipate all reasonable uses.
  • Operating instructions excluding certain unsafe uses may be necessary but may not be enough if the use is reasonable and causes harm.
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Key Changes Interpretation Suggested Action

General duty of employers to provide reasonable opportunities for employee participation in health and safety.

If the safety committee or OHS rep makes a recommendation, the employer must either adopt it or say why not in writing.

Reasonable opportunities has regard to the size and activities of the employer and the overriding duty to act 'in good faith".

This does not mean employers have to provide the same opportunities for all employees, at all sites or occupations. The main factors will be the type of hazards and the number of people exposed to them

  • Take a pragmatic approach. Set up the participation system so that all employees can contribute but don't bend over backwards for low risk, geographically isolated occupations (and similar).
Employers with less than 30 employees are only required to set up a participation system if 1 or more employees requests it. If you do not respond to the request within 6 months, employees can go ahead and elect representatives
  • If this clause applies to you, it would be far better to respond to the request than to wait for the alternative.
Employers with more than 30 employees must develop an agreed employee participation system.

participation system must be like, except that it must have a review process.

An existing system may be used, as long as it  is agreed and has a review process.

Failure to comply with this within 6 months gives employees the right to elect up to 5 reps or half the safety committee.

  • "Rolling over" an existing system would usually make more sense than starting again.
  • It therefore makes sense to start something before May 5th.
  • The Act does not REQUIRE safety representatives to be appointed [ unless there has been a failure to comply ], however, there are roles allowed for safety reps if elected. [ See below ]
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Where safety reps are appointed because of failure of the employer to develop a system, they must be elected.

The candidates must work regularly and be willing to fulfil the role. They must be elected by secret ballot.

  • Self explanatory
Key Changes Interpretation Suggested Action
Safety representatives entitled to 2 days paid training leave per annum. This training is not the same training needed for "Trained health and safety representatives".
[ See above ].
  • There are maximums that apply to paid days off per employer.
"Trained safety reps" may issue Hazard Notices to the employer and notify OSH. A Hazard Notice can only be given by safety reps who have developed certain competencies [ yet to be prescribed ].
  • This will not happen until the competencies are agreed.
  • As stated previously, the employer is not obliged to implement the recommendation but must explain why in writing if not
  • Because the Notice may also be submitted to OSH, there is a mechanism for follow through.
    [ See also the section on Infringement Notices
    ]
Employees may refuse to do work likely to cause serious harm.

Can refuse on reasonable grounds.

Reasonable grounds includes having been advised by a safety rep [ not necessarily the "trained safety rep ].

Employees cannot refuse if the risk has not materially changed.

  • There is clearly an incentive to ensure safety reps are knowledgeable and reasonable.
  • In other words, if the work is, by nature hazardous, it would not be considered reasonable to suddenly start refusing it.
Any person may require information on progress or otherwise of enforcement action. This prepares the way for others to take out prosecutions [ see below ].
  • Self explanatory
Any person may take enforcement action.

Only if the relevant authority will not be taking action [ see above ].

Must be within 6 months of the event

Legal costs remain the responsibility of the person taking action

  • Self explanatory
Key Changes Interpretation Suggested Action
OSH may issue Infringement Notices [ instant fines ].

Maximum $4000 and scaled, depending on offence

Must be within 14 days

Must have reasonable grounds

Must have had prior warning

Prior warning includes a Hazard Notice from an employee safety rep

  • This clause clearly links up with Hazard Notices and the reporting of those to OSH.
  • Therefore, Hazard Notices are semi enforceable.

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No insurance allowed against fines. This is now illegal and has no effect
  • Self explanatory
Increased penalties

Section 49, where a person takes an action or fails to act, knowing that serious harm was likely.

Max fine up from $100,000 to $500,000 and 2 years prison.

Section 50, breach of the Act.

Max fine up from $50,000 for serious harm to $250,000 for all cases.

  • Self explanatory

The above list includes all the main amendments and the changes that affect most employers.

The following list includes further amendments that may be of interest:

  • Act to apply to air crew operating within NZ.
  • Act to apply to NZ ship's crew (whether inside or outside NZ).
  • Armed Forces must develop employee participation system by separate agreement.
  • Act clarified to include mobile employees.
  • Self employed and principals to maintain accident registers.
  • Other agencies may be instructed to enforce the Act.
  • Particular regard to Sentencing Act 2002.

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