Health and Safety reforms: What business leaders need to know
Health and Safety reforms: What business leaders need to know
Earlier this month, the Health and Safety at Work Amendment Act 2026 passed its final reading in Parliament. This is the most significant update to the health and safety regime since the enactment of the Health and Safety at Work Act 2015, over 10 years ago.
Although it doesn’t take effect until 1 April 2027, we talked to Alex Cochrane, Director, BDO Gisborne about what impact this could have on business leaders.
“Health and safety can sometimes feel complex for business leaders, particularly for SMEs that do not have large internal teams or specialist support. These reforms should help businesses focus their efforts where they matter most - on the risks that could cause serious harm, and on practical steps to manage those risks well.” – Alex Cochrane, Director, BDO Gisborne
What’s changing from 1 April 2027?
Critical risk becomes the central focus
The most significant change is the shift toward managing “critical risks”, which are risks associated with hazards that could result in death, a notifiable injury, illness or accident, or certain occupational diseases. In practical terms, this means businesses will be expected to identify the risks that could cause the most serious harm and make these the priority in their health and safety systems.“For many small and medium-sized businesses, the move to a critical risk focus should help simplify health and safety without lowering expectations. The opportunity is to spend less time documenting every possible risk in the same way, and more time applying sound judgement to the risks that could cause the most serious harm.”
A small business with higher-risk operations, such as machinery, vehicles, construction activity, hazardous substances or lone working, may still have significant critical risks to manage.
Different duties for PCBUs
The Act introduces a more proportionate approach for small PCBUs (Person Conducting a Business or Undertaking), generally defined as businesses with fewer than 20 workers for at least nine months of a financial year. From 1 April 2027, these small businesses will be required to manage critical risks and prioritise those risks when meeting their wider health and safety obligations.Larger PCBUs, including many medium-sized businesses with 20 or more workers, will still need to manage both critical and non-critical risks, while giving critical risks the highest priority. This distinction matters for growing businesses. Once a business moves beyond the small PCBU threshold, it may need to revisit its systems, reporting, officer oversight and documentation to ensure it is meeting the broader duty.
Approved Codes of Practice (ACOP) may become more important
The amendments also strengthen the role of Approved Codes of Practice (ACOPs). WorkSafe has noted that following an ACOP can provide greater certainty for businesses, because a business that follows an ACOP’s processes for managing a relevant risk will be taken to have complied with the Act for that matter.“For SMEs without dedicated health and safety specialists, clearer industry-specific guidance could make a real difference. Good guidance helps business leaders understand what best practice looks like in the context of their own operations, rather than relying on generic templates or systems that are too complex to be useful. Businesses should keep an eye out for updated guidance and relevant Approved Codes of Practice ahead of the changes taking effect.”
Overlapping duties and duplicated compliance
The amendments also aim to reduce duplication where health and safety obligations overlap with other regulatory systems. This may be relevant for businesses operating in sectors where safety obligations already sit alongside licensing, certification, sector regulation or professional standards.“The practical benefit for SMEs may be less time spent duplicating compliance processes and more time focused on the risks that matter most. But businesses should not assume that meeting one regulatory requirement automatically satisfies their health and safety duties. The key test is whether they have identified and are actively managing the critical risks created by their work.”
What should business leaders do now?
While the changes do not come into force until 1 April 2027, business leaders should use the lead-in period to review whether their current health and safety approach is focused, practical and proportionate. For many SMEs, this does not mean starting again. It may mean simplifying existing systems so they are easier to understand, easier to maintain and more clearly focused on preventing serious harm. Alex recommends starting with these practical steps:- Identify the critical risks in your business, including those linked to your people, plant, vehicles, premises, contractors and customers.
- Check whether your current controls are working in practice, not just documented in a policy.
- Review whether your health and safety reporting gives directors and senior leaders visibility of the most serious risks.
- Look for upcoming WorkSafe guidance and any relevant ACOPs for your sector.
- Consider whether your business is likely to remain under, or move above, the small PCBU threshold.
- Keep worker engagement practical by involving employees in identifying critical risks and testing whether controls are realistic.
“The intent of the reforms is to help businesses focus on the risks that matter most. For SMEs, that should make health and safety more practical and proportionate, but it should not be read as permission to take serious risks any less seriously. The businesses that will be best prepared are those that can clearly identify their critical risks, show how those risks are being controlled, and demonstrate that leaders and workers understand their role in keeping people safe.”
