BusinessCompliance

Expected to be enacted in the spring

The Health and Safety at Work Amendment Bill was introduced into Parliament on 8 February 2026 and passed its first reading on 12 February 2026. It is currently before the Education and Workforce Select Committee. Submissions closed at the end of March and the committee is scheduled to report back to Parliament by 12 June 2026. It is anticipated that the Bill will be passed before the election (early November).

If enacted, the Bill will represent the most significant reform of health and safety law in New Zealand since the Health and Safety at Work Act (HSWA) was passed in 2015.

 

Purpose of Bill

Workplace Relations and Safety Minister, the Hon Brooke van Velden, said that the Bill is intended to reduce compliance obligations, focus on preventing serious harm and clarify businesses’ obligations under the HSWA.[1] The key proposed changes in the Bill are:

  • Increased focus on preventing serious harm
  • Reducing compliance obligations for small businesses
  • Clarification of the health and safety obligations of landowners, and
  • Clarification of the relationship between health and safety legislation, and other legal requirements.

 

Introducing ‘critical risk’

The Bill introduces a new defined term of ‘critical risk.’ Small businesses must focus on avoiding critical risks. All other businesses must manage all risks but are required to ‘prioritise’ critical risks.

The Bill defines a ‘critical risk’ as a risk associated with one of the matters specified in Schedule 1A of the Bill; this lists a number of specific high-risk activities such as working with asbestos and other hazardous substances. A critical risk also includes any hazard that is likely to result in death, a notifiable injury or illness, a notifiable incident or an occupational disease listed in Schedule 2 of the Accident Compensation Act 2001.

Identifying what the critical risks are for a particular business is likely to be one of the more challenging aspects of the new legislation.

 

The impact on small to medium-sized businesses

The most significant change contained in the Bill is the narrowing of the duties of small to medium-sized businesses, referred to as ‘small PCBUs,’ to risks that are defined as critical risks under the Act.

This does not mean that small businesses have no obligations in relation to other risks. They are still required to provide adequate facilities to ensure the safety of their employees.

A small PCBU will be defined as a business with fewer than 20 employees. Businesses that have a fluctuating workforce will qualify provided that they have fewer than 20 employees for at least nine months of the year. This change is likely to have a significant impact on the compliance obligations of businesses in New Zealand, given that approximately 97% of businesses would qualify as a small PCBU.[1]

 

Obligations of landowners and recreational activities

Potential exposure to prosecution under health and safety legislation in New Zealand has long been a concern for landowners who wish to make their land available for recreational activities.

In the past, this has been a particular concern for rural landowners who have often avoided providing access to their land due to such concerns. It has also discouraged public landowners, such as schools and councils, from allowing their land to be used for recreational activities.

The potential liability of landowners was recently highlighted by the prosecution of the owner of Whakaari/White Island following the eruption in 2019, which resulted in the deaths of 22 people. The landowner was initially convicted in the District Court under the HSWA, despite not directly operating the tours to the island.[2] The High Court overturned this conviction on appeal.[3]

The passing of the Bill would mean that landowners would not generally owe health and safety obligations to people using their land for recreational activities.

 

The Health and Safety at Work Act and other legislation

The Bill would clarify the relationship between general health and safety legislation, and other legislation that applies to specific industries such as the aviation and maritime sectors.

In the past, there has been confusion as to whether or not businesses in industries covered by specific legislation have additional duties under the HSWA. The Bill clarifies that compliance with industry-specific legislation or approved industry codes of practice is also compliance with the HSWA, so there are no additional obligations.

The Bill also states that the owners of earthquake-prone buildings do not need to take additional steps under the HSWA, provided that they comply with the requirements of the Building Act 2004.

The Bill is intended to reduce the compliance work that is required by businesses under current health and safety legislation, which has become an expensive ’tick-box’ exercise for many. However, it will still be important for small businesses to identify the ‘critical risks’ in their businesses and to take steps to mitigate them.

If you have any concerns about the impact that this proposed legislation may have on your business, please don’t hesitate to contact us.

 

[1] New Zealand business demography statistics at February 2025, Statistics New Zealand.

[2] WorkSafe New Zealand v Whakaari Management Ltd [2023] NZDC 4149.

[3] Whakaari Management Ltd v WorkSafe New Zealand [2025] NZHC 288.

 

 

DISCLAIMER: All the information published in Commerical eSpeaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Commerical eSpeaking may be reproduced with prior approval from the editor and credit given to the source.
Content Copyright © NZ LAW Limited, 2026.    Editor: Adrienne Olsen.       E-mail: [email protected]      Ph: 029 286 3650


Using AI in your business

What to consider?

Artificial intelligence (AI) has developed from a futuristic concept to a mainstream tool used by many businesses on a daily basis. The exponential growth of AI in recent months/years is hard to miss, with various industries adopting the technology to streamline operations and boost productivity.

For business owners, the prevalence of AI presents both opportunities and challenges. AI can improve efficiency, generate new ideas and identify opportunities but, like many emerging technologies, it also comes with risks that should be carefully managed.

The Ministry of Business, Innovation and Employment recently released AI guidance entitled Responsible AI Guidance for Business to assist with the use and development of AI systems ethically, responsibly and effectively across all types of businesses. We outline some of the key risks and practical strategies discussed in the Guidance to proactively mitigate challenges before they arise.

 

Key risks

Bias: If an AI tool has been trained on biased data, it may produce biased results. When collecting data, AI systems may reflect patterns of your historical decision-making which can lead to inaccurate results.

If this data is then used to make business decisions, it may output biased outcomes. An example of this is biases in personnel data. If an AI tool is trained on existing data held by your business to review job applications, it may produce results that reflect historical inequitable hiring trends, for example, gender, race or age. This could create bias or, at worse, discrimination and human rights challenges.

Errors: Generative AI is also susceptible to inaccuracies and errors in results. In some cases, AI systems can generate what are often referred to as ‘hallucinations.’ These are outputs that appear credible but are in fact fabricated or entirely false. This happens when the system fills gaps in knowledge with plausible sounding information, presenting it as fact. Such inaccuracies can create operational, reputational and legal risk.

The prevalence of these false or misleading outputs underlines the importance of maintaining human oversight over AI-based activities to ensure outputs are accurate. A business may be liable for the inaccurate output of AI tools. This could also include a situation where the output infringes third party intellectual property rights.

Using datasets that are accurate, compliant with regulations and transparent can help to reduce risks of inaccurate output. Accuracy is likely to improve over time as AI technology improves, and layers of audit/checks/balances are built into AI tools.

Privacy and cybersecurity: Many generative AI systems collect, store and use data inputs to train themselves and to generate future responses. This creates risks of privacy, confidentiality and cybersecurity breaches if data is input into systems that allow this. A breach of this nature is likely to have serious implications. Even in closed systems, data processing usually occurs on third-party platforms which could have vulnerabilities to data leaks or cyber-attacks.

Comprehensive reviews of AI tools, how they work practically, and their terms and conditions, should be undertaken. This will allow your business to have a clear understanding of the risks and make an informed decision as to whether use of the AI tool is compliant. Specific privacy impact assessments should also be undertaken.

AI tools, by their very nature, are very powerful at processing large volumes of data. This means they can often find data on systems which is otherwise inaccessible to a lay user. Role-based permissions should be set up, prior to AI tool implementation, to ensure that AI tools can only access data that is appropriate for that role. The Guidance recommends adopting data anonymisation, encryption and secure storage to help protect confidential and personal information.

In terms of business implementation, the Guidance suggests beginning AI rollout in low risk areas and maintaining human oversight in relation to AI-related activities and output. When AI is involved with providing data to guide major decisions that may have significant or widespread impact on your business, having a human review aspect can avoid mistakes or unintended consequences.

 

Getting the foundations right

Purpose: The Guidance encourages businesses to start by considering its purpose for adopting AI. It is important to be clear from the outset about what you want to achieve with AI; this will help direct your integration strategy, and ensure that it aligns with your commercial goals, business values and legal responsibilities.

Establishing AI usage policies early on can help guide responsible AI use and prepare your business for the inevitable challenges that will arise. Policies will need to be regularly reviewed to deal with the fast pace of change in this area.

Legal compliance: When adopting or developing AI systems, your business must ensure compliance with all relevant statutory, regulatory and contractual obligations. Obligations will vary widely based on the industry and sector in which you operate, but will generally always include privacy, intellectual property, consumer protection, confidentiality and contract law.

This means understanding how AI interacts with existing legislation and ensuring that AI use does not inadvertently breach obligations. You should proactively assess legal risks and ensure the roll-out of the AI tool complies. Policies can be implemented within your business to address any risk areas with staff and operations.

In some cases, changes to business practice may be required. For example, changes to terms of trade and privacy policies to seek permissions and/or to be clear where AI is to be used so customers or contracting parties are not inadvertently misled. In some cases, contractual variations may need to be sought for existing relationships. Documenting decisions is also helpful should there be any compliance challenges in the future.

Governance: Regardless of the size of your business, the Guidance recommends establishing a team with a diverse skill set in security, technology, privacy, legal compliance, AI education and stakeholder communications. This will help identify, manage and mitigate unintended risks associated with AI usage, as well as ensuring decisions about AI use are aligned with your organisation’s values and broader legal obligations. Such a team could create, implement and update any AI usage policies.

Risk management: AI can expose and amplify existing risks, so it is important that risk management practices are adopted early. It is vital to develop policies and protocols which provide for a structured approach to identify, assess, manage, record and review risk. These plans help ensure your business can respond quickly, minimise harm, and meet legal or contractual obligations if something goes wrong.

As part of this process, your business should also consider the potential impact on stakeholders such as staff, clients and shareholders. Meaningful engagement and stakeholder impact assessments can help inform the development of AI policies and reduce reputational and operational risks.

 

Conclusion

AI offers businesses significant opportunities to improve efficiency, generate insights and drive innovation. However, as highlighted in the Guidance, realising these benefits responsibly requires more than simply adopting the technology.

Engaging with the Guidance will assist you to reduce risk and align AI use in your business with ethical and legal expectations.

 

 

DISCLAIMER: All the information published in Fineprint is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Fineprint may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2025.     Editor: Adrienne Olsen.       E-mail: [email protected]     Ph: 029 286 3650


Postscript

Incorporated societies must re-register by 5 April 2026

Time is getting tight for organisations to start the re-registration process to continue operating as an incorporated society.

 

Under the Incorporated Societies Act 2022, you must re-register by 5 April 2026, otherwise your organisation will automatically cease to exist. A winding up application to be dissolved or liquidation are the choices if you don’t want your incorporated society to live longer than 5 April next year.

 

If you haven’t started the re-registration process, time is of the essence. There is a very helpful website: www.is-register.companiesoffice.govt.nz If you would like some advice on the process, or anything else related to your organisation, please don’t hesitate to contact us.

 

 

 

eInvoicing

Many small to medium sized businesses are now using eInvoicing to bill their clients or customers. It’s straightforward, easy to use, saves time and helps reduce the risk of fraud – invoices go straight from your office to your client’s inbox.

 

If you’re already using Xero Business or MYOB Business, then eInvoicing is part of the features you will already have on your desktop.

 

To know more about how eInvoicing can benefit your business, go here: www.einvoicing.govt.nz.

DISCLAIMER: All the information published in Property Speaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice. No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of Edmonds Judd. Articles appearing in Property Speaking may be reproduced with prior approval from the editor and credit given to the source.
Copyright, NZ LAW Limited, 2022.     Editor: Adrienne Olsen.       E-mail: [email protected].       Ph: 029 286 3650