Client Briefing: Landlord Responsibilities Under the New Health and Safety At Work Act 2016

As of 1 April 2016, the new Health and Safety at Work Act (the Act) legislation came into force, bringing with it a number of key changes for businesses operating in New Zealand. These changes also have an impact on landlords­ commercial or residential. Landlords are considered persons conducting a business or undertaking (PCBU).

In addition to landlord responsibilities under the Residential Tenancies Act, under our new laws there are duties and obligations for PCBUs to proactively manage the health and safety of workers, contractors and tenants.

An individual, company or trust that owns and does not occupy a property and rents that property out to others is considered to be liable to comply with all new legislation. Under the Act they will owe duties as a PCBU when engaging contractors such as a plumber, electrician, builder or the like, for any work on the property.

Possible penalties:

PCBUs and individuals who breach any of the provisions of the Act may be liable for fines of up to the following limits:

RECKLESS CONDUCT IN RESPECT OF HEALTH & SAFETY DUTY

(BEING RECKLESS ABOUT THE RISK TO AN INDIVIDUAL OF DEATH OR SERIOUS INJURY)

• Individual (not a PCBU): Imprisonment not exceeding 5 years; and/or fine up to $300,000
• Individual (PCBU): Imprisonment not exceeding 5 years; and/or fine up to $600,000
• Body Corporate: Fine up to $3 million

FAILURE TO COMPLY WITH HEALTH & SAFETY DUTY

(EXPOSING AN INDIVIDUAL TO RISK OF DEATH OR SERIOUS INJURY)

• Individual (not a PCBU): Fine up to $150,000
• Individual (PCBU): Fine up to $300,000
• Body Corporate: Fine up to $1.5 million

FAILURE TO COMPLY WITH HEALTH & SAFETY DUTY

(NO EXPOSURE TO DEATH OR SERIOUS INJURY/ ILLNESS)

• Individual (not a PCBU): Fine up to $50,000
• Individual (PCBU): Fine up to $ 1 00,000
• Body Corporate: Fine up to $500,000

I am a landlord - what do I need to do? 

A landlord cannot solely rely on the contractor to manage health  and safety risks and cannot take an 'all care; no responsibility' approach with contractors whom they  have on the property; it is unlawful to contract out of the Act's duties.

Landlords must proactively manage the health and safety of the worksite (the property) and be able to produce evidence that they have paid attention to health and safety implications. Lack of knowledge or awareness is no defence in the event of a serious harm or incident leading to an investigation and/or prosecution.

To find out more about practical steps a landlord could take to comply as well as an indication on how much an insurance policy would cost, please download the full article.