A win for governance: Minister signals support for directors’ role in H&S

The Government’s proposed reforms to the Health and Safety at Work Act 2015, as outlined by Hon. Brooke van Velden, are a welcome recognition of the governance challenges that directors across Aotearoa have long navigated. 

These reforms directly address concerns raised by the New Zealand Institute of Directors (IoD) in its 2024 submission on the health and safety regulatory system. In particular, we called for clearer delineation between the roles of governance and management, advocating that boards must focus on leadership, oversight, and assurance – not day-to-day operations. 

The Minister’s confirmation that changes in the health and safety legislation will distinguish these roles more sharply is a significant step forward and reflects the IoD’s position that effective health and safety systems require empowered management, supported by strategic governance, not duplicated responsibilities.

Equally significant is the Government’s intention to develop and endorse approved codes of practice that better support directors. The IoD submission highlighted the need for a governance-specific accepted code of practice to help directors discharge their legal duties under section 44 of the Act.

The potential is that such a code, aligned with frameworks such as The Four Pillars of Governance Best Practice, would allow boards to take a proportionate and informed approach to oversight, strengthening both accountability and culture without overreaching into management territory. 

As these reforms progress, directors should position themselves to contribute to and adopt emerging codes that support risk-based, evidence-informed decision making. In doing so, boards will not only align with regulatory expectations but also reinforce their role in driving long-term organisational resilience and worker wellbeing.

IoD sponsor Dentons has prepared a legal analysis of the Government’s decisions and sponsor HSE Global has provided a health and safety practitioner and governance advisor perspective.