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WELCOME

HEALTH AND SAFETYWHAT YOU NEED TO KNOW

BEN MOLLOYPARTNER

Overview• Pike River Tragedy 2010• The Royal Commission and Independent Taskforce

Report on Health and Safety• Healthy and Safety Reform Bill• The Concept of Duty Holders• Standard of Care Required• Workers Consultation and Engagement • Managing Risk• Offences and Penalties • Enforcing Safety

PIKE RIVER TRAGEDY • Underground explosion at Pike River coal mine on 19

November 2010• 29 men died and their bodies have not been recovered• This tragedy exposed the ineffectiveness and systemic

failures of health and safety in New Zealand• Consequently sparked a major and much needed review

of New Zealand’s workplace health and safety

ROYAL COMMISSION AND THE INDEPENDENT TASK FORCE • The Royal Commission and the Independent Task Force were

set up following Pike River to undertake a robust and extensive review of New Zealand’s workplace health and safety system

• Both recognised the overwhelming need for:• A legislative overhaul• An improved regulatory system

REFORM• Government introduced two key changes:

1. Health and Safety Reform Bill2. Creation of WorkSafe New Zealand as a stand-alone

Crown Agency focused on workplace health and safety• These changes introduce a radically different approach.• Shift in focus from employer/employee duties to workers and

workplaces.• Responsibility for health and safety will be filtered from the

top down – everyone within the workplace will bear a degree of responsibility for the safety of themselves and others.

KEY CONCEPTS• A Person Conducting a Business or Undertaking (“PCBU”)

• Primary duty holder• Usually a business entity such as a company or partnership

• An “Officer”• Any person involved in making decisions that affect the whole

or a substantial part of the business of the PCBU• Includes directors, partners, managers or anyone in

comparable positions such as a board member

KEY CONCEPTS cont…• “Workers” includes:

• Employees;• Contractors;• Sub-contractors;• Employees of contractors or sub-contractors; and• Anyone who carries out work in any capacity for a PCBU

• “Workplace”• Any place where the worker goes or is likely to go

• These new concepts recognise the complex nature of modern working arrangements.

STANDARDS OF CARE FOR DUTY HOLDERSPCBU• A PCBU will have a duty to ensure the health and safety of workers as

far as reasonably practicable.

• What is “reasonably practicable” depends on the likelihood of the

hazard and the degree of harm, what is known about the hazard and

related harm, and the availability of means to mitigate the risk.

• It is possible for PCBUs to have overlapping duties.

• PCBUs will need to consult, co-operate and co-ordinate activities with

all other persons who have a duty in relation to the same matter in

order to meet their shared responsibilities.

STANDARD OF CARE cont…OFFICERS• Officers will have a duty to exercise due diligence to ensure the PCBU

complies with its duties and obligations under the new law.

• Will require an Officer to take reasonable steps to:

• Understand the nature of the PCBU’s operations and associated hazards; and

• Ensure that the PCBU implements appropriate health and safety processes,

and that these processes are sufficiently resourced and verified.

• This obligation can attract liability even if the PCBU itself is not accountable

and will ensure decision-makers are held liable for the consequences of

their decisions.

STANDARD OF CARE cont…WORKERS• Workers and other persons at workplaces must take reasonable care

for their own safety and not adversely affect the safety of others.• They must comply as far as they are reasonable able with the PCBU’s

instructions.• Must co-operate with their health and safety policies and

procedures.• Alongside this duty, workers have the right to cease work if they

reasonably believe that carrying out the work would expose the health and safety of themselves or others to a serious risk.

CONSULTATION AND ENGAGEMENT

• PCBUs will have a duty to consult and engage with workers on health and safety matters as far as is reasonably practicable.

• PCBUs must share any relevant information with workers in relation to workplace health and safety.

• PCBUs must consult with workers in circumstances such as when making decisions about the adequacy of facilities for the welfare of workers, and when proposing changes that may affect the health and safety of workers.

• While the duty of consultation is not new, the scope of the required consultation will be much wider.

CONSULTATION AND ENGAGEMENT cont…• PCBUs will be required to have worker participation practices

that provide reasonable opportunities for workers to participate effectively in improving workplace health and safety in the business or undertaking, on an on-going basis.

• A PCBU will be treated as complying with this requirement if in respect to the workplace, there is an elected health and safety representative, or a health and safety committee has been established.

MANAGING THE RISKS • Taking reasonable practicable steps to manage workplace risks

will be required.• 4 step process

Identify the hazards(What will cause harm?)

Assess the risks (Likelihood and nature of harm)

Control the risk (Substitute, Isolate, Admin controls…)

Review(Is it working?)

CATEGORIES OF OFFENCES1. Breach of a duty: Failure to comply with a health and safety duty.

Penalties:• Corporate - $500,000 fine• Officer - $100,000 fine• Individual - $50,000 fine

2. Risk of death/serious injury/illness: Failure to comply with a duty and so exposes a person to risk of death or serious injury or illness.

Penalties• Corporate - $1.5 million fine• Officer - $300,000 fine• Individual - $150,000 fine

3. Recklessness: Engaging in conduct that exposes a person to risk of death/serious injury/illness.

Penalties• Corporate – $3 million fine• Officer - $600,000 fine and/or five years imprisonment• Individual - $300,000 fine and/or five years imprisonment

ENFORCING SAFETY IN THE WORKPLACE• The Bill, together with WorkSafe New Zealand, will ensure that

safety in the workplace is enforced in a variety of ways that include:

• Provisional Improvement Notices• Prohibition Notices• Non-disturbance Notices• Enforceable undertakings

SummaryThe Health and Safety Reform Bill represents a significant shift in health and safety legislation and attitudes in New Zealand. Once passed into law, everyone in the workplace will be responsible for proactively managing risks to reduce workplace injuries and fatalities.

Contact details:Ben Molloy Haigh Lyon Lawyers PH: 09 306 0600Level 14, 34 Shortland StAuckland

Presenter: Murray Fulton Tuesday 5th May 2015

in association with

Succession Planning - Maximising Your Investment

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What is Succession / Succession Planning?

Succession – selling, or selling down your business

Succession planning – planning the selling, or selling down of your business

Key Succession Observations Many businesses sell for less than the

owner would like – often because the sale is rushed or ill prepared.

Many business owners don’t have an exit plan – but you’ll certainly exit sooner or later – whether upright or horizontally

Grooming pays – like any key asset, you prepare it for sale, looking its best

Start early – ideally, the day you start your business is a good time to start planning your exit.

Factors that can limit your Options, and also Your Selling Price Branding of your business promotes YOUR name – hard to

sell your identity and personality with the business! You have employee shareholders in the business which can

make it hard to sell, especially if your shareholder agreements are restrictive or out of date.

You haven’t groomed your key people to run the business in your absence – no reliable ‘2nd tier’ in the place

The business systems are not well documented, very difficult, if not impossible to extract for the new owner

Customers deal with you, not your business, and may leave when you do

Groom your Business For Succession

Digital Marketing – a Critical Business Exit Issue

Groom your Business For Succession

Digital marketing means an integrated package including:

Quality “content rich website” – i.e. videos, no pressure, informs, builds trust and value for clients and prospects..

Website MUST be compatible with Smartphones. MUST focus on the client and prospect’s needs, NOT your business capabilities.

SEO – being found by search engines – on the 1st page of a Google Search.

Social media – QUALITY content, not what you had for lunch.

Immediate follow-up of leads, and fulfilment of orders.

Digital Marketing – a Critical Business Exit Issue

Groom your Business For Succession

The purchaser of your business will not pay what your business is worth unless there is clear documented evidence that revenue streams are either driven, or at minimum supported by quality digital marketing.

Groom your Business For Succession

Digital Marketing – a Critical Business Exit IssuePresenting your business with a digital marketing capability that is: Clearly demonstrated Operating at a superb level, with trained and committed

staff, integrated into all other core business systems, will mean that:

1. You have the best possible opportunity to sell or sell down your business, and:

2. You have the opportunity to achieve the best possible price for your business.

Digital Marketing – The Value GapR

even

ue

The Revenue and Value Gap

Time

Digital Marketing – The Value Gap

There are many ways to exit your business:

The key is to have a plan!

Succession Channels – Ways to Exit

Sell to a competitor, supplier or customer Sell to a unrelated third party Sell to your management team Let your family inherit Partial or complete buy out by key staff Form a franchise or licensee structure Split it up and sell the parts Close it down

Top 3 most likely scenarios Family Succession: Are they willing?

Are they competent?Are they committed?Are they managers? Are they competent?Can they afford it? Will the staff allow it?Are they serious?Are they honest?Can they afford it? Will they protect staff?

Internal sale: buy-in or buy-out

External Sale

Use a simple chart to work out how to make your business exit ready

Then put dates beside each event!

Planning the route

• Sell for $1.5m • Retain key people

1/5/2017

1/5/2015 NOW

THE FUTURE

Assess branding

Automatesystems

Tune profitability

Hire a manager

Pass clients tostaff

Buy outshareholders

Pay off loans andHP's

Don’t try to do it all at once, plan each step in achievable bites over a reasonable timeline.

Relaunch and rebrand as a positive marketing step – don’t talk about exit.

Start now!

Simple Steps work best

Groom key staff, delegate effectively, and train them as needed in marketing, finance and sales management.

Delegate customer decision making to key staff. Delegate key staff supplier and stock

responsibilities, train as needed regarding supply chain and stock management skills.

Why taking an intern into your business works

Joshua Lewthwaite

If you have any questions please contact us at:mfulton@advantagebusiness.co.nznmuller@advantagebusiness.co.nz

www.advantagebusiness.co.nz

Thank you for your TIME!