Consultation on this proposal is closed
Consultation on this initial proposal has closed. We're still working with our business customers to identify better ways to help you have healthy and safe workplaces. To find out more and give your feedback, go to the current open proposal.
Workplace safety incentive proposal
We think businesses should be better rewarded through their levies when they reduce injuries at work and support the rehabilitation of their injured workers. We proposed two ideas to improve the experience rating (ER) programme and we’ve received your feedback on these.
Our new approach to helping create healthy and safe workplaces
As part of these changes, from 1 April 2017 our Workplace Safety Discount (WSD) and Workplace Safety Management Practices (WSMP) products will no longer be offered.
We’ve got more work to do in shaping how ER might motivate businesses to drive improvements in their health and safety performance. We know that levy payers and stakeholder groups will have many excellent ideas of their own to contribute, so we’re planning a ‘co-design’ approach to enhancing the programme.
As a first step, we’ll be getting a greater understanding of customers’ needs and preferences, so we make the right design choices and develop an enhanced system that businesses understand and are motivated to use.
We’ll continue the conversation on workplace incentives so we’re keeping this page open and the opportunity for you to provide further feedback.
Give us your feedback
If you’d like to keep up-to-date on the conversation, subscribe to receive emails.
Our new approach to workplace incentives
We’re making some changes to how we help businesses create healthy and safe workplaces. This includes:
- designing new initiatives to stop workplace injuries from happening
- developing new incentives that will encourage businesses to invest in health and safety improvements
- creating levy-based rewards for businesses that reduce workplace accidents, through enhancing our experience rating programme.
Discontinuing our WSD and WSMP products supports this approach as these products recognise compliance rather than outcomes.
Improving experience rating
We currently offer a no-claim discount programme for small businesses where they can receive a 10% discount or loading on their levies. For medium and large businesses, we apply an experience rating that offers a discount of up to 50% or a loading of up to 75%.
Why experience rating?
Our existing Experience Rating (ER) programme has many of the right attributes to reward good performance by businesses, however we believe an enhanced version could play a more effective part in supporting our wider drive to improve workplace health and safety.
With the removal of the WSMP and WSD incentive programmes, we think it’s even more important to get ER right as it supports our wider drive to improve workplace health and safety.
We’ve received feedback from our customers on how we can improve the ER programme. For example, you’ve told us it’s not obvious how a business’ claims affect the levies they pay. This may be because of the time gap between when the health and safety performance changes are noted, and when this change is then reflected in the levy discount or loading.
How we’re improving
We proposed two conceptual designs for the ER programme which were designed to start and stimulate discussion. Thank you to those that have provided feedback on these. They draw on approaches used in other countries and ideas on how to address issues identified in the past.
Our new approach to helping create health and safe workplace
Why some products are being discontinued
Our products have been running for over 10 years – in that time the workplace safety environment has changed significantly. As part of the health and safety changes last year, our legislation was updated and the WSMP and WSD products no longer align with the Health and Safety at Work Act.
We’ve also been reviewing the products over this time and found there’s no strong connection between the products and a reduction in injury claims. Our customers have told us the products are inflexible and not tailored to their businesses.
Extend your contract
To make this transition easier, businesses that are eligible can apply again before the products close on 31 March 2017. Find out how to apply:
Workplace Safety Discount
Workplace Safety Management Practices
We encourage you to get your application in as soon as possible to ensure we can process it before the end of February 2017 for WSMP and the end of March 2017 for WSD.
Be part of the conversation
We want to collaborate with you about how we can create safer and healthier workplaces in New Zealand. This is the start of an ongoing conversation – if you're keen to be a part of it, use the feedback form and let us know.