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April 2, 2025

Van Velden’s Health and Safety Overhaul

cutting red tape

The government has unveiled a sweeping reform of New Zealand’s workplace health and safety laws, led by Workplace Relations and Safety Minister Brooke van Velden. Touted as a major step toward reducing red tape for small, low-risk businesses, the changes mark a clear pivot toward deregulation under the ACT-National coalition — and have ignited a national conversation about the balance between efficiency and worker protection.

“We’re delivering on the ACT-National coalition agreement to reform health and safety laws and regulations,” van Velden said at a post-Cabinet press conference. “Small, low-risk businesses are not sure which risks to focus on and struggle to meet the costs of compliance. I’ve listened and I’m acting.”

A Leaner Approach to Risk

The centrepiece of the reform is a narrowed focus for small enterprises — businesses deemed low-risk will no longer be required to address every potential hazard. Instead, they will only need to manage risks related to death, serious injury, or illness. This includes maintaining basic workplace standards such as first aid provisions, emergency plans, and adequate lighting, but removes requirements like psychosocial harm policies.

“This will improve outcomes for businesses and workers by focusing the system on critical risks and getting rid of unnecessary costs,” van Velden said. “Less paperwork … more clarity.”

Additional measures include cutting back on notification requirements — now limited to serious incidents — and resolving overlapping responsibilities across regulatory frameworks.

Clarifying Leadership Roles in Safety

Another significant shift in the legislation targets governance. The government plans to redefine the boundary between governance and operational management, aiming to relieve company directors of unnecessary liability.

“Directors and management are also duplicating work,” van Velden said in a subsequent press release. “The day-to-day management of health and safety risks is to be left to managers so that directors and boards can focus on governance and the strategic oversight of the business.”

These changes, she argued, would reduce fear-driven overcompliance among directors and enhance the strategic focus of organisations without compromising on safety.

Landowner Liability Reconsidered

Also included in the proposed legislation is a controversial exemption of landowners from liability in recreational accidents occurring on their property — such as those involving hunters, fishers, or trampers. Van Velden pointed to high-profile cases like the Whakaari/White Island eruption as justification.

But legal experts argue the change is unnecessary. “This is a solution in search of a problem,” said health and safety lawyer Grant Nicholson on Newstalk ZB. The regulator already takes a fair and measured approach. Farmers and public entities aren’t routinely being prosecuted for recreational incidents, he argued.

Nicholson warned that the reform could unintentionally give landowners a “free pass,” even in cases involving man-made structures that pose risks, highlighting the Cave Creek tragedy in the 1990s as an example.

Support from Business, Concerns from Experts

Business leaders have broadly welcomed the reforms. Carolyn Young, Chief Executive of Retail NZ, said the changes would lift a “huge burden” off the country’s 27,000 small retailers.

“There’s all sorts of things that businesses are being asked for – especially if you have a near miss or someone comes around to inspect your property – they are wanting every i dotted and every t crossed for things that most people would consider common sense,” Young said. 

Prime Minister Christopher Luxon echoed this sentiment, criticising what he called “forests of warning signs” and “piles of paperwork” that have grown under previous health and safety regimes. “It’s good to see we’re bringing back common sense after health and safety, frankly, has gone mad,” Luxon said.

However, safety experts and advocates remain sceptical.

Mike Cosman, Chair of the Institute of Safety Management, described the reform as a “golden opportunity squandered,” arguing that the government is prioritising compliance cost reduction over actual safety improvements.

New Zealand currently records between 50 and 70 workplace deaths annually — more than four times the rate of the UK. The estimated economic cost of workplace harm sits above $4.9 billion each year.

“This seems to be looking through the wrong end of the telescope,” Cosman said, arguing that workers should not face more risks because they work for smaller businesses.

Timeline and Political Undertones

The first stage of reforms will be drafted into legislation and introduced to Parliament by the end of 2025. If passed, they are expected to take effect in early 2026. Van Velden signalled further changes would follow, including improvements to WorkSafe and sector-specific adjustments.

The changes reflect a broader ideological push from the ACT-National coalition to reduce state intervention and streamline regulation — a trend echoed in other policy areas.