Health & Safety in Commercial Property: Compliance Guide
Commercial property compliance is a major responsibility for landlords, property managers and tenants of business premises, but it can be one of the most challenging to manage. In particular, dealing with health and safety in commercial properties can be a minefield of legislation and regulation, and it's hard to know exactly where responsibilities lie.
Crysp's guide to health and safety compliance for commercial property is a good place to start when navigating this daunting subject. In this guide, you'll find all you need to know about health and safety compliance across your commercial premises or multi-site portfolio, so you can ensure you've got all bases covered should an incident occur or you are subject to an inspection.
Contents:
What is commercial property compliance?
Commercial property compliance is the practice of ensuring that businesses premises are operating in accordance with relevant legislation. This includes adherence to regulations in areas like health and safety, fire risk, water treatment, heating and ventilation, plumbing among others. In particular, commercial property compliance is crucial to ensure that all those who work in or visit your premises are safe from harm and that risks are minimised. The consequences of not adhering to current regulations when it comes to health and safety can be devastating for all involved.
Why is commercial property compliance important?
Owners, managers or tenants of commercial properties that neglect their compliance obligations as laid out in law, are putting their businesses and the individual people who use their premises at unmitigated risk. Commercial property compliance is important because incidents are more likely to occur when rules and regulations are not closely followed.
Failing to put in place robust procedures to reduce risk can have a dramatic effect, not only on people's lives and on the tenant business, but on a landlord's ability to continue operating as a commercial enterprise. If you are investigated by the Health & Safety Executive (HSE), your commercial property compliance processes and documentation will be thoroughly examined, and if you are found wanting, penalties will be harsh. Dealing with incidents that occurred within your establishment can be a prolonged, complex process and can be extremely damaging for your reputation as well as your financial standing.
According to HSE, there are tens of thousands of work-related injuries reported under RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) each year, some of which result in prosecution, huge fines, and in some cases, custodial sentences for those deemed responsible for health and safety.
Who is responsible for commercial property compliance?
When considering health and safety and who is responsible for commercial property compliance, it's important to take into account the two different parties potentially involved:
the owner or landlord of the business premises (or the commercial property management agency working on their behalf);
the business or 'tenant' who uses the building. This can be one and the same, if the business proprietor also owns the premises in which they operate.
Who is responsible for what areas of a commercial property largely comes down to what is written in the lease agreement - either party could have some responsibility, depending on what was agreed when the tenancy began. Tenants often bear the bulk of the health and safety obligations within these rental agreements, but it's important to understand what your obligations are as a landlord from the outset, to ensure you remain compliant with health and safety regulations.
What are the health and safety responsibilities of commercial landlords?
Commercial landlords or property managers may have a particular duty to share health and safety responsibilities where more than one business operates in the same building. In these cases, the landlord may be responsible for common areas, and if a service charge is paid for maintenance (e.g. for lifts or shared toilets), then the landlord is likely to be responsible for health and safety in these areas too. Generally speaking, a commercial property landlord can be responsible for:
General building maintenance and ensuring any common areas are safe.
Providing and maintaining any fire safety equipment such as fire extinguishers, smoke alarms, fire exits and emergency exit signage.
Ensuring any electrical appliances needed for the running of the building are in good working order and tested regularly.
Providing safe drinking water and ensuring plumbing is up to standard.
Providing toilets that are accessible for staff and visitors, including those with disabilities.
Making sure that HVAC (heating, ventilation, air-conditioning) systems are working properly.
Ensuring that the building is accessible for people with disabilities, in line with the Disability Discrimination Act (DDA).
Carrying out regular risk assessments and taking action to reduce hazards, particularly in shared buildings such as serviced offices or business centres.
Keeping gas appliances such as boilers and flues in good working order and making sure gas safety checks are carried out annually.
Ensuring tenants have all the health and safety information and training they need.
Depending on the lease agreement, tenants could also be responsible for some of these areas above, as well as:
Ensuring the building is kept clean and in good condition, and reporting any damage or defects to the landlord.
Making sure anyone who works or visits the business (including customers, contractors, delivery drivers etc) are safe from harm whilst on the premises.
Carrying out risk assessments specific to the business operation, to identify hazards and take action to eliminate or reduce them.
Keeping fire exits clear.
Ensuring equipment and machinery is in good working condition and workspaces are safe.
Making sure that hazardous substances, such as chemicals or flammable liquids, are stored, used and disposed of safely.
Regularly testing of electrical equipment and systems necessary to the business.
Ongoing staff training to ensure skills and knowledge around health and safety are kept up to date.
Ensuring the landlord or commercial property management agency are fulfilling their responsibilities.
Cooperating with other businesses in the building on health and safety matters.
Because responsibility for health and safety and commercial property compliance is not always clear-cut, it's always advised to get support from HSE, a legal professional and/or a health and safety advisor to ensure all parties know their legal obligations.
Commercial property compliance legislation
Commercial property owners must adhere to the rules and regulations laid down in law or face serious consequences. There are various pieces of key legislation that must be followed to ensure all commercial property compliance obligations are met, including:
Health and Safety at Work Act 1974 - all employers must ensure that employees and others are kept safe while at work, as far as is reasonably practicable. According to HSE: “It shall be the duty of every self-employed person to conduct his undertaking in such a way as to ensure, so far as is reasonably practicable, that he and other persons (not being his employees) who may be affected thereby are not thereby exposed to risks to their health or safety… Landlords, under Section 53 of HSWA are regarded as being self-employed and tenants fall into the class of "other persons (not being his employees)".
Regulatory Reform (Fire Safety) Order 2005 - applies to non-domestic properties and ensures premises reach the required standards, and employees and others using regularly the building are provided with adequate fire safety training.
Control of Asbestos Regulations 2012 - relevant for all non-domestic premises, regardless of the type of business that's carried out there. It applies to anyone who manages a building or is responsible for maintenance or repairs (which may be the tenant if this is stipulated in the tenancy agreement).
Electricity at Work Regulations 1989 - expand on the section on electrical safety in the Health & Safety at Work Act. They place a duty on every employer, self-employed person or employee in a workplace to ensure that all work that uses electrical equipment is carried out safely and risks are minimised.
Building Regulations - sets the standards for the design and construction of buildings to ensure they are safe for all who use them. They also make sure buildings comply with modern standards to conserve fuel and power.
Equality Act 2010 - this act consolidates existing discrimination legislation, including the Disability Discrimination Act 1995. It ensures that no-one, including those with disabilities, is discriminated against in terms of the service provided by the property owner/manager or the physical features of a building.
Environmental Protection Act 1990 - refers to the management of waste, and puts strict rules in place concerning the pollution of land, air and water. It applies to waste disposal and 'nuisances' such as noise or smells.
These are just some of the main pieces of legislation that commercial property owners and managers must adhere to, but it's important to check to determine if there are any other specific regulations relevant to your circumstances. Regulations evolve in line with government policy, so it's crucial to keep up with any changes that may affect you.
What are the main hazards in a commercial property?
There are many different types of commercial properties, from offices and warehouses to shopping centres and care homes, so the hazards in each building will differ depending on the activities being carried out. Generally speaking, the main causes of commercial property compliance breaches when it comes to health and safety include:
Fire safety issues caused by poor fire safety equipment, a lack of emergency exits, and inadequate evacuation procedures.
Slips, trips and falls caused by things like uneven flooring, blocked or cluttered corridors and walkways, and insufficient lighting.
Electrical hazards such as faulty wiring, overloaded circuits, and outdated electrical equipment that has not been regularly tested.
Unsafe or uncomfortable working conditions, such as unsuitable workstations or equipment that can cause musculoskeletal disorders or other health issues.
Asbestos, which can cause serious health issues if not managed correctly.
Carbon monoxide from gas appliances, boilers, and heating systems that have not been regularly serviced or checked.
Biological hazards such as bacteria, viruses and other microorganisms which are easily spread and put employees at risk of infection.
Exposure to chemicals such as cleaning chemicals, pesticides, or other toxic substances.
Excessive noise levels that can damage hearing and affect mental wellbeing in places such as construction sites or industrial workplaces.
Mental health issues such as stress, anxiety, and burnout caused by workplace pressures.
How do you manage health and safety in a commercial property?
As a property owner or manager you'll understand the pressures that come with commercial property compliance and ensuring employees and visitors of your tenant businesses are safe. Regularly reviewing your compliance procedures will help you keep abreast of any changes in regulations, and help keep the health and safety inspectors (and any potential enforcement action) away. In addition, putting processes and procedures in place to help you manage your health and safety obligations in an organised way, will save considerable time, effort and money when it comes to managing your property in future. But how do you manage all this?
Appoint a health and safety person
The person managing health and safety checks may be you as the landlord, owner or manager, or you may wish to appoint someone to manage this for you. This could be a colleague, or an external health and safety advisor - but remember if you use an external party that the responsibility for commercial property compliance will still lie with you and/or the tenant. This person could be responsible for managing processes, documenting and setting reminders for when checks are due and can help take some of the strain.
Create a risk assessment
A risk assessment for the properties in your portfolio is an important first step in managing health and safety. This is a document that lists all the potential risks and outlines the actions you have taken to minimise those risks. Each building should have its own specific risk assessment, focused on those areas highlighted as the landlord's responsibility in the lease agreement (such as communal areas). There are various steps you need to include in your risk assessment, as outlined by HSE. These include:
Identify the hazards
Assess the risks
Control the risks.
Record your findings.
Review the controls.
This document provides documented evidence that you are adhering to regulations. It needs to be kept safe and easily accessible and be updated regularly to reflect changes in tenancy, workplace practices or people using the building. The most effective way to keep on top of your commercial property compliance documentation is digitally, using online compliance software. You can use this information to inform your health and safety policy, which sets out your general approach to health and safety for tenants and other interested parties.
Put procedures in place
In order to keep on top of health and safety in your commercial property, it's important to put processes and procedures in place to make this more efficient and easy to manage. A haphazard approach will mean important aspects are missed or forgotten, which can lead to increased risk of something going wrong.
You should have a regular timetable for maintaining and inspecting the property, equipment and facilities. This includes regular updates to risk assessments and maintenance schedules for things like fire safety and HVAC systems. Documenting all your checks and storing them securely is paramount, so they can be quickly and easily accessed.
You'll also need to ensure you have a process in place for emergency planning and response procedures in case of fire, natural disasters such as flooding, and other emergency situations - and communicate these processes to your tenant businesses and their staff.
In addition, ensure you have protocols for addressing health and safety issues or violations of the lease agreement, and for reporting any hazards or incidents to the HSE.
Consult your tenants
By having two-way conversations with your tenants about health and safety you can ensure that everyone is working in a happy and healthy environment. Making sure they are clear on responsibilities and procedures, and listening to any concerns they may have makes it easier to create a culture of compliance where everyone is on the same page when it comes to health and safety - plus your tenants will know that you take health and safety seriously which will make them more likely to extend their lease.
Manage fire safety
Fires are one of the most serious and dangerous hazards in any building, but the majority of fires are preventable. This is why it's crucial to have a fire risk assessment in place for your commercial property to mitigate the risks. This will help you keep people safe, prevent damage to your property, and avoid prosecution for failure to comply with legislation. Much like a risk assessment, according to the government, a fire risk assessment will help you:
Identify the fire hazards
Identify people at risk
Evaluate, remove or reduce the risks
Record your findings
Prepare an emergency plan
Provide training
Bring your health and safety compliance online
Managing property is a huge undertaking, and commercial property compliance can be a real headache for busy landlords and managers, especially if you fail to keep on top of things. Gone are the days of dusty papers in filing cabinets and rooting through paperwork to find what you need. What you do need is a ‘golden thread of information’ that links all your processes and documentation and provides concrete evidence that you are adhering to health and safety law and managing your obligations. And there is a way to achieve this - to digitise your compliance management and bring everything online.
How can Crysp help you manage commercial property compliance?
Compliance doesn't have to be complicated, and Crysp are ready and waiting to help you digitise and manage your legal compliance - as well as reduce the stress that comes with health and safety responsibility.
Cryps can help you:
Manage your commercial property, compliance, and risk management online with a simple-to-use digital platform.
Digitise your health and safety documentation, so it's stored securely in one place, whenever you need it.
Take control of your compliance status and ensure you're on track with your legal obligations.
Understand what you need to do and how to simplify your processes.
Offer advice and support from commercial property compliance experts
Whether you're a commercial landlord, property owner or a facilities manager responsible for health and safety, get in touch for a friendly chat about your requirements and discover how Crysp can help you take the stress out of managing health and safety compliance.
Summary
There is no doubt that commercial property compliance can be a nightmare to manage, and a huge responsibility on the shoulders of landlords and commercial property managers.
In our handy guide we’ve covered the main legislation you need to navigate, typical hazards that may arise in commercial property and the processes and procedures that will ensure you keep on top of your health and safety obligations. Looking after commercial property, especially where you have multiple sites or many different tenant businesses to consider, takes a huge amount of time and effort - and can be stressful - but there are ways to reduce this burden. What’s more, where responsibilities lie can be a complex issue, so there’s extra work to do to ensure this is laid out in the lease agreement and landlords and tenants know what their legal obligations are. Commercial property compliance requires teamwork from all parties involved.
And remember, you don’t have to go it alone. Crysp is here to take the complexity out of compliance and support you with your health and safety needs, every step of the way.