In April the Corporate Manslaughter (England and Wales) and Corporate Homicide Act (Scotland) comes into force and this legislation now makes it easier to convict irresponsible companies.
However, companies with good safety policies and robust risk management systems have nothing to fear, this act only penalises those that can be proven beyond reasonable doubt to have badly managed their businesses and caused loss of life.
More people lose their lives at work each year than are killed in wars and yet in the forty years between 1966 and 2006 only 34 companies were prosecuted for homicide and only seven resulted in successful convictions. Yet during those forty years there were many terrible major incidents involving passengers and transport companies, such as the Southall train crash, the capsizing of the Herald of Free Enterprise, the Ladbroke Grove train crash and the sinking of the Marchioness barge on the River Thames. In just those four disasters, over 250 people died and yet not one company was found guilty of 'common-law' Corporate Manslaughter because it was not possible to prove the 'controlling mind' of the company had caused the deaths.
Under the new law, the 'controlling mind' concept is removed, so that a gross breach of an owed duty of care by a company, caused by the actions of any of its senior managers, can result in that company being charged. However, if all health and safety laws are followed and if managers act diligently and responsibly, then even if a disaster occurs, neither they nor their company may be liable, where it can be shown that all reasonable safeguards were taken but death occurred nonetheless.
For those who flout the new regulations there are new sanctions including unlimited fines which will be set by the presiding Judge at the time of the hearing. Then there is the 'Remedial Order', where the Judge imposes a judgement on remedial action required by the company. In addition, the judge will also be able to impose a 'publicity order' requiring the company to 'name and shame' themselves, publicly announcing their conviction and the amount of their fine.
There is no prison sentence attachment to the new act, but that does not preclude any manager within the company facing jail time by being personally prosecuted for gross negligence manslaughter, or incurring a criminal conviction under Section 37 of the Health and Safety at Work Act.
One of Santia's legal consultants, Peter Ralston who has an in-depth understanding of the new law, will be presenting seminars to Senior Executives on this subject in the New Year and he commented,
"There's no reason why anyone should be afraid of this act; it's an excellent and much needed instrument in the legal tool box and if you ensure that you are health and safety compliant in all areas, you have nothing to worry about. For those who flout it, the law will now come down hard on them, and ignorance is a dangerous thing; Senior Managers must be aware of their responsibilities under the law".
For more information on the Corporate Manslaughter legislation & how it can affect your organsiation contact our inhouse team by clicking here or phone 0800 072 4667 | 
