It is rare to think of one law that could single-handedly wipe out your business. However, the Corporate Manslaughter and Corporate Homicide Act 2007, which comes into force on 6 April 2008, may well be the first. Essentially the new law will make it easier to convict organisations whose senior managers have collectively breached their duty of care, causing death. Employers with good safety cultures, however, have nothing to fear.

The Act introduces a new penalty of publicity orders - requiring a convicted organisation to publicise the details of its failings in the media. Businesses convicted under the Act will also face unlimited fines; the Government’s Sentencing Advisory Panel is consulting on proposals that fines should be between 7.5 and 10% of turnover, where a company is convicted. 

Main provisions of the Act
An organisation may be found guilty of corporate manslaughter if the way in which its activities are managed or organised:

• causes a person's death; and
• amounts to a gross breach of a relevant duty of care owed by the organisation to the deceased.

In determining what is a gross breach, the Act requires the court to consider whether the conduct that constitutes the failure falls far below what could reasonably have been expected. A number of factors are identified in considering this, including failure to comply with any relevant health and safety legislation or guidance and how serious the failure to comply was.

The new offence will be investigated by the Police and then prosecuted by the Crown. 

How should you prepare ?

• Review all health and safety policies to ensure that statements made and standards set can be achieved and comply with your legal obligations.
• Assess your organisational structure and list 'senior managers' - making sure these people have appropriate training for their role.
• Review job titles and job descriptions to ensure that senior managers know what their responsibilities are.
• Provide up to date training for senior managers on their health and safety responsibilities.
• Check that your insurance cover includes legal protection in the event of criminal charges for corporate manslaughter and consider insurance and indemnity policies for staff members who may need legal support during a corporate manslaughter investigation.
• Review your health and safety culture asking yourself whether you promote a safe environment for your employees and the public?
• Review your disaster management plan - is there a protocol for dealing with the authorities and legal advisers if a fatality occurs?

Disclaimer

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published.

Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.

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