11 September, 2017
Draft laws released
Draft legislation addressing occupational safety and health (OSH) has been released. The law is expected to be passed in the second half of 2017.
The proposed legislation puts new safety obligations on employers, employees and others in certain industries including "petroleum and natural gas works".
Implications for employers and others
The proposed new laws impose obligations relating to health and safety on employers, employees and those who design, manufacture, import, sell, install or demolish machinery and equipment that may cause risks to safety or health. There are penalties for violations.
Many types of workplaces are covered (eg, government departments, joint ventures, foreign-owned companies) and the law applies to a range of industries, including petroleum, natural gas and mining. The Ministry of Labour, Immigration and Population can extend the application of the OSH law to more industries later.
Companies should assess whether their current OSH measures meet the standards required by the draft law.
Key obligations created
The proposed laws require prior approval (through a business licensing system) of employers and those wanting to build, install, modify or demolish structures, machinery or equipment, by application to the Factory and General Labour Law Inspection Department (Department) 30 days before commencing operations (including details of their proposed OSH system).
Employers in particular will have extensive obligations. They must evaluate the risks associated with their particular workplaces and any machinery or equipment used in their workplaces, and implement protective measures to prevent damage to safety and health from using them. Employers must also implement specific safety measures such as providing appropriate protective clothing and equipment, conducting safety training, forming an OSH committee, displaying safety warnings and instructions and notifying workplace accidents, diseases and poisoning.
The proposed laws give Inspecting Officers from the Department broad powers to inspect, investigate, collect evidence and conduct interviews. They can also issue improvement notices (to rectify a safety/health risk within a set period) and prohibition notices (to stop work until the risk is rectified). The Department can take over and stop operations if employers fail to comply.
Penalties are wide-ranging, though relatively low compared to other ASEAN nations. For example, many employer obligations are subject to a penalty for breach of at least MMK 1,000,000 (about USD 740) to maximum K 5,000,000 (about USD 3,700) fine or maximum 3 months imprisonment or both.
Actions to consider
It is unclear how quickly the Department will begin enforcing compliance after the OSH law is passed.
However, employers (and other duty-holders mentioned above) should consider:
- Assessing the OSH measures in their workplace alongside the law to determine current compliance
- Making efforts to address compliance gaps
- Putting in place policies and procedures regarding safety and health risks, workplace accidents and incident reporting, first aid, etc.
- Engaging OSH consultants and legal advisers to assist in preparing for compliance
Conclusion
While the proposed law is broadly in line with many other ASEAN jurisdictions, it is significant because it creates a comprehensive OSH system in Myanmar for the first time.
We will keep you advised of further developments about the draft OSH law.
For further information, please contact:
Jo Daniels, Partner, Baker McKenzie
jo.daniels@bakermckenzie.com
See our full Doing Business In Myanmar Report via this link. https://www.investingmyanmar.com
