Written by Asil Kutty
The New Zealand Government is making significant changes to its workplace health and safety laws, focusing on benefiting smaller businesses. These reforms are expected to reduce ‘excessive’ regulations, shift the focus to preventing significant workplace risks, and ease administrative burdens for small businesses. This shift aims to create a more optimistic and manageable environment for small business owners and managers (van Velden, 2025).
But what exactly is changing? Who qualifies as a low-risk and small business? What risks will the government and businesses continue to manage? Moreover, what are the concerns about this approach?
Background: What is the Act, and Why is it Being Reformed?
The Health and Safety at Work Act 2015 is New Zealand’s primary work health and safety legislation, largely modeled on Australia’s work health and safety framework. Its primary purpose is to ensure that everyone in the workplace is safe and protected from harm. The law was initially designed to cater to any business size and minimize compliance costs. It also places responsibilities on businesses to manage any potential risks and hazards while also protecting employees. The new reforms aim to simplify these responsibilities, providing reassurance for small business owners and managers (Worksafe, 2019).
According to data collected by the Ministry of Business, Innovation & Employment in 2022, small businesses are defined as having less than 20 employees. 97% of businesses in New Zealand have fewer than 20 employees (575,703 businesses), employing 693,100 people (Ministry of Business, Innovation & Employment, 2022). A low-risk business is one where the danger or exposure to hazards is minimal and experiencing accidents, harm, or illness is unlikely.
However, small businesses have stated that they struggle with compliance costs and determining which risks to mitigate. The new reform, announced by Minister of Workplace Relations and Safety, Brooke van Velden, is part of the ACT-National agreement. This reform aims explicitly to cut unnecessary obligations for small businesses (van Velden, 2025).
What Will Actually Change Under the Reform?
Under the proposed changes, small and low-risk businesses will only manage critical risks, which can cause death, serious injury, or serious illness. These businesses will only be required to offer basic facilities such as drinking water, lighting, ventilation and first aid. For instance, ‘basic facilities’ could mean drinking water provisions, adequate lighting in work areas, proper ventilation systems, and a first aid kit. They will also no longer have to notify regulators of any minor incidents (Ministry of Business, Innovation & Employment, 2025).
A hotline will also be available to the public to report unnecessary road cone use. This is part of a broader effort to reduce over-regulation and reclaim public spaces unnecessarily cordoned off due to excessive risk aversion. This reduction in over-regulation hopes to bring a sense of relief to small businesses and the public.
The changes will also aim to narrow the main objectives of the Health and Safety at Work Act to prioritize handling serious workplace risks and reduce unnecessary compliance. The reforms bring a clear definition of the responsibilities under the Health and Safety at Work Act and how they differ from those under other regulations that address the same risks. This clarity aims to reduce confusion and prevent directors from feeling pressures to overdo compliance (Ministry of Business, Innovation & Employment, 2025).
All businesses are still required to report serious harm incidents and manage any significant risks that can cause significant harm (Ministry of Business, Innovation & Employment, 2025).
Why is the Government Doing This?
Proponents argue that these reforms will reduce unnecessary compliance costs and administrative burdens for small businesses, allow businesses to focus on managing significant risks and clarify responsibilities, primarily distinguishing between government regulations and operational management (van Velden, 2025). All of these aim to alleviate the current stress that small businesses face. The CEO of Retail NZ, Carolyn Young, agreed that the reforms would remove burdens for small businesses and allow them to focus more on selling their products (Radio New Zealand, 2025). The reforms were announced on March 31, 2025, and legislation is expected to be introduced in late 2025. If passed, it will be implemented in 2026 (MinterEllisonRuddWatts, 2025).
Concerns and Criticism
The reforms also have their fair share of critics. Mike Cosman (chair of the Institute of Safety Management) stated that the reforms would not do much to address the 50-70 deaths that occur due to workplace accidents every year in New Zealand. The reforms focus more on cutting costs but neglect the potential cost of harm (Radio New Zealand, 2025). Furthermore, the president of the Council of Trade Unions stated that the minister had ignored key problems expressed in letters to the government from academics, professionals and business owners and that she is reducing the government’s position in enforcing people are safe at work. The letters advocated for a stronger system and more investment in the workforce along with better regulations (Radio New Zealand, 2025). Something else to consider is how repetitive injuries will be managed, especially those that can affect the long-term health of employees. How will mental health be addressed under the new reforms? It remains unclear whether conditions such as workplace stress, burnout, or gradual-onset injuries will continue to receive adequate attention under the reforms.
What This Means For Employees and Employers
- If an employee works in a small shop, their employer still needs to provide first aid and manage significant risks.
- The law will clarify what managers and directors are legally obligated to do to ensure workplace safety for their employees.
- Minor accidents like slips or cuts are not obligated to be reported unless they cause serious harm.
Key Takeaways
- The government is reforming health and safety laws to reduce burdens on small businesses.
- Small businesses must only focus on critical risks and provide basic welfare.
- Supporters argue that the change is economically beneficial, while critics argue that key issues are still not acknowledged or managed.
- If passed, legislation will be implemented in early 2026.
References
Ministry of Business, Innovation & Employment. (2022). Small Businesses in 2022. https://www.mbie.govt.nz/dmsdocument/27313-small-business-factsheet-2022-pdf
Ministry of Business, Innovation & Employment. (2025, April 4). First set of changes for health and safety reform. https://www.mbie.govt.nz/about/news/first-set-of-changes-for-health-and-safety-reform
MinterEllisonRuddWatts. (2025, April 2). Health and Safety at Work Act 2015 reform update. https://www.minterellison.co.nz/insights/health-and-safety-at-work-act-2015-reform-update
Radio New Zealand. (2025, April 2). Planned health and safety law changes miss bigger problems – union. https://www.rnz.co.nz/news/political/556941/planned-health-and-safety-law-changes-miss-bigger-problems-union
Radio New Zealand. (2025, March 31). Govt to cut health and safety requirements for smaller businesses. https://www.rnz.co.nz/news/political/556728/govt-to-cut-health-and-safety-requirements-for-smaller-businesses
Worksafe. (2019, July 18). Introduction to the Health and Safety at Work Act 2015 – special guide. https://www.worksafe.govt.nz/managing-health-and-safety/getting-started/introduction-hswa-special-guide/#lf-doc-22789
van Velden, B. (2025, March 31). Going for growth: cutting health & safety red tape. Beehive. https://www.beehive.govt.nz/release/going-growth-cutting-health-safety-red-tape
