New Corporate Manslaughter Act - Businesses must act now

After debate lasting several years, the controversial Corporate Manslaughter and Corporate Homicide Act will come into force on 6th April 2008 leaving many businesses open to possible prosecution where a fatality occurs in connection with a person’s work.  So what are the far reaching implications of the legislation and what should be done to protect ourselves?

The new offence replaces the common law offence of manslaughter by gross negligence for companies, and applies to companies, partnerships, Trade Unions, and Employers’ Associations, the Police Force and certain Government departments and public bodies.

The legislation, which is designed to make prosecutions for health and safety more straightforward, differs from the current law, which only links a company’s guilt to the gross negligence of an individual said to be the embodiment of that company.  It has, in the past, proved difficult to successfully prosecute large organisations where it has not been easy to identify someone in authority with the necessary knowledge of the issues leading to the death.

From April 2008, businesses whose gross negligence leads to a death, will mean they may face prosecution for manslaughter.  The prosecution will have to show that the death was caused by a gross breach of duty of care owed by the organisation to the deceased.  In essence, this means that there will be a close examination of the way in which senior management organised and managed the business activities.  The maximum penalty is an unlimited fine and the court can, in addition, make a remedial order as well as a publicity order, forcing the organisation to publicise the conviction.

There are several things that businesses can do to minimise their exposure.  All risk assessments should be reviewed and updated; a consistent and documented enforcement regime for health and safety issues should be implemented; the safety-culture should be reviewed and the extent of the business insurance cover should be checked.

“Only businesses can be liable under the new Act, not individuals.  However, the common law offence of manslaughter by gross negligence will continue to apply to individuals.”

“The Act abolishes the common law offence of manslaughter by gross negligence in its application to organisations and it also lifts Crown Immunity enabling relevant public authorities to be prosecuted for the new offence.”

For further information please contact David Thompson at Moore Blatch on 023 8071 8000 or email david.thompson@mooreblatch.com