Statutory Liability Additional Information
Legislation and Compliance
The early 1990s saw substantially modified health and safety, environmental and consumer legislation introduced into the New Zealand business environment.
Businesses, their directors and management have increasingly been confronted with having to deal with compliance issues associated with the various legislation.
They have also become well aware of the exposures they now face a result of non-compliance or breach.
Exposures and the Penalty Regime
As well as the corporate entity, directors and senior management face personal liability not only for their own actions but for those of their employees and in some cases independent contractors or agents.
Under much of the legislation particularly the Building Act, Health and Safety in Employment Act, Commerce and Fair Trading Acts the result of an adverse judgement can be disastrous both financially and in terms of reputation, Maximum penalties are substantial and the cost of defence can easily exceed the fine itself.
Most recently the introduction of the Health and Safety in Employment Amendment Act has created a number of new areas of exposure for businesses, an even more stringent compliance regime for workplace safety and with it harsher penalties.
