‘Red Tape’ Report Puts Health and Safety at Risk

A government-commissioned report by business leaders, presented to the cabinet last week, threatens to increase health and safety risks and put businesses, lives and properties in danger.

The report, ‘Cut EU Red Tape’, includes 30 key recommendations designed to save businesses time and money and remove barriers to competitiveness for European business.

One proposal within the report suggests national governments should have the flexibility to decide when small, low-risk businesses need to keep written risk assessments, because they are best placed to decide which businesses are low-risk.

The report fails to make clear that small firms in the UK, with fewer than five employees, are already exempted from keeping written risk assessments and that for low-risk businesses, risk assessments can be a very straightforward, efficient and beneficial process.

A further concern is how governments will decide on classification of a ‘small, low-risk business’, without reviewing individual circumstances and risk factors.

Whilst it is expected that making such changes may on the face of it save businesses across the EU an estimated €2.7 billion, Richard Jones, head of policy and public affairs at the Institution of Occupational Safety and Health (IOSH) stated the potential costs of doing so could be even higher:

“…health and safety failures in the UK cost society a staggering £13.4 billion per year, double this once you take into account the cost of occupational cancers and property damage.

“…we’re concerned that once again health and safety is misunderstood and wrongly labelled as a hindrance to business – whereas research shows that positive feelings about work are linked with higher productivity, profitability and worker and customer loyalty.”

Barry Holt, director of policy and research at the International Institute of Risk and Safety Management (IIRSM), said:

“Current legislation does not require risk assessment for risks which are “insignificant”, are we now saying that no record should be kept of those risks which are likely to cause harm to employees?

“In terms of claims for compensation, it is unlikely that insurers would be prepared to fight claims if there is no documentary evidence to support their case.”

Alongside the clear benefits of undertaking risk assessments to protect lives, businesses and properties, it is also important for businesses to undertake written risk assessments to a high standard to demonstrate compliance and prove due diligence. The importance of insurance auditing may also be amplified if such changes were to take place, to ensure best practice is being adhered to, in order to validate insurance.

Other key proposals in the ‘Cut EU Red Tape’ report include:

• Taking action to simplify costly and complex chemicals regulations.
• Reforming employment law where it prevents firms from creating jobs, and abandoning plans to introduce complex new rules on employee consultation and subcontracting.
• Updates to the Working Time Directive in order to provide flexibility and clarity on the rules.
• Exempting micro-enterprises from all new employment laws where possible.
• Simplifying labelling requirements and improving cross-border standards for parcel delivery in order to boost e-commerce.
• Capping fees for payment by credit card, online and mobile phone.
• Abandoning plans to force sole traders to pay fees to register to collect and transport waste.

The government will next be taking these proposals to the European Council for further review and consideration.

With the right guidance and support, risk management needn’t be a time-consuming or expensive exercise, but failure to manage risks can lead to substantial business costs including accidents, inflated insurance premiums, reputational damage and legal costs. For further information or guidance, contact us.