Trusts & Incorporated Societies

In February 2026, the Court of Appeal ruled that Trusts are subject to the Health & Safety at Work Act (HSAW).

In RH and JY Trust v WorkSafe New Zealand [2026] NZCA 12, the court ruled that a trust can be considered a "person" under the Health and Safety at Work Act 2015 (HSWA). This means that a trust can be prosecuted and fined under HSWA despite the fact that trusts are not legal entities. This also means that Trustees are considered “officers” so carry personal exposure as well (with a proviso noted further below).

Incorporated Societies, if they employ paid staff or pay for contractor services are already subject to the Act due to them being recognised as legal entities meaning they satisfy the test. The appointed executive are also subject to being “officers” so have personal exposure and liability.

What this means is that both Trusts and Incorporated Societies must have an active Health & Safety framework with up-to-date policies, procedures, etc.

We mentioned that Trustees carry personal exposure as “officers”. This was stated in the Court of Appeal ruling. The proviso to this is that WorkSafe has throughout this particular prosecution indicated a clear preference to prosecute trusts rather than individual trustees. The Court of Appeal decision means that it can now do so. That in turn makes it more likely that other trusts will be prosecuted but suggests that it is less likely that individual trustees will be prosecuted.

That may be somewhat reassuring for some trustees. However, the decision is also significant in recording the Court of Appeal's view that trustees are in the position of “officers”, meaning that they will have distinct personal obligations to conduct due diligence under s 44 of the HSWA. Although WorkSafe has stated its preference, this by no means is legally binding and can change.

The decision is a reminder that trusts (and Incorporated Societies) should follow sound business practices in relation to health and safety – health and safety risks must be understood and managed, trusts should carry insurance that covers the cost of defending a prosecution, and trustees must understand their obligations, including their obligation to undertake due diligence of health and safety matters.

Trustees also need to be aware that how they will be "seen" by the courts will now be different in different contexts. In the health and safety context, the "trust" can be the relevant actor and defendant in any prosecution, but in all other contexts there is no such thing as a trust.

We are more than happy to discuss how this applies to your club. We recommend to book in with our Managing Director who is the topic expert on the risks for Trusts and Incorporated Societies.

Please reach out to osh@managecompany.co.nz where Hayley and Beth will respond and book you in.