Department of Labour logo for printing

In This Section

Downloads

A principal's guide to contracting to meet the Health and Safety in Employment Act 1992 - A guide for workplaces

Foreword

Contractor safety is a significant issue for many workplaces.

Where once contracting for services was the exception in all but a handful of industries — such as construction, agriculture and forestry — it is now increasingly common across workplaces.

For individuals, this means that people often work in places that are controlled, at least in part, not by their employer, by another business to which they are contracted.

Section 18 of the Health and Safety in Employment Act 1992 creates a duty for principals to contracts that applies to these situations, and this guidance has been prepared to help businesses meet that duty.

The courts have also found that health and safety obligations are fundamental to the relationship between principal and contractor. The guidance therefore provides plenty of examples from the case law. It also describes a "good practice" framework for principals to meet their duties for contractor safety.

There is an enormous range and diversity of contracted activities, and well-managed contracts benefit all. Such benefits include:

  • reduced risk of accidents and ill health
  • greater satisfaction for both contractors and clients
  • fewer incidents, losses, problems, stoppages and delays
  • less management time required to deal with problems
  • continuous improvement in practices, and
  • financial savings.

Businesses with effective health and safety systems are in turn more likely to deliver high quality goods and services to their customers.

The guidance sets out a broad process for building health and safety into contract management, which can then be adapted to specific contractual situations or industries. It was developed in response to submissions received by the 2007 Quality Regulation review. Public consultation was completed on draft guidance in late 2008 and the document has been revised in response.

A study was also commissioned to compare the draft version of the guidance with the practice of a recognised highly performing local authority, Manukau City Council. This case study is being published in support of the guidance.

In administering the Health and Safety in Employment Act, the Department of Labour is very aware of the significant influence the supply chain exerts on workplace health and safety, and encourages that influence to be positive wherever possible. This guidance is a significant step towards achieving that outcome, and the Manukau City Council case study confirmed the validity of the approach.

The Department also acknowledges the contribution of a broad range of other organisations in developing the draft guidance, and others that have contributed to the final version – particularly John Hughes of the Canterbury University School of Law.

In publishing guidance with such broad application, the Department accepts that the document is principles-based and not industry specific. We therefore encourage principals to contracts and sector groups to use it as a basis to draw up their own "best practice" approaches to managing health and safety in contracting.

 

Lesley Haines
Acting Deputy Secretary of Labour, Workplace