Corporate Manslaughter Act - Are You Ready?

The Corporate Manslaughter Act came into force on 6th April 2008. The Act will place greater responsibility on businesses to ensure that they put in place stringent health and safety practices.

Failure to do so could lead to a business being publicly named and shamed, and fined up to 10% of its annual turnover, should a death occur as a result of ’gross management failure’.

A gross management failure will occur where a company's conduct falls considerably short of the duty of care it owed to the deceased. Directors and managers will need to show that they took all reasonable steps to ensure the health and safety of those at risk.

It is estimated that the new Act could potentially cost UK plc £21.2million in legal bills. Currently, more than 50% of employers have admitted that they are not ready for the introduction of the new law.

The Forum of Private Businesses have urged small businesses to ensure that they are ready for the new laws.

The FPB’s Chief Executive, Phil Orford, said: "This new legislation means that failure to manage and monitor their procedures could lead to a heavy fine and public humiliation. It is vital that smaller firms undertake a full review of their systems and processes to create and enforce strict health and safety procedures..."

Company Car Employees

Additionally, the FPB warns that freight transport firms, and businesses which provide their employees with company cars, are most at risk from prosecution under the Act.

"Because of the relatively high instances of road fatalities, business owners in the transport industry – and those who provide company cars – should make sure their employees are fully aware of health and safety best practice," said the FPB’s Policy Representative, Matt Goodman. "The Corporate Manslaughter Act means that they must establish clear health and safety procedures, and monitor them, or face heavy fines and public censure."

Corporate Manslaughter Act Resources

Our Insurance partner, Hiscox, has also provided the following tips to help businesses to fully prepare for the Corporate Manslaughter Act:

• Create a safe working environment: Review existing health and safety policies to ensure they are up to date and robust. The Health and Safety Executive can provide businesses with advice on developing and implementing effective health and safety procedures: www.hse.gov.uk.
• Familiarise yourself with the Act: It is essential that you are aware of the finer details of the Corporate Manslaughter Act and fully understand its implications for your business. Visit the Office of Public Sector Information for guidance: http://www.opsi.gov.uk/acts/acts2007/ukpga_20070019_en_1.
• Drive awareness: All employees need to be aware of the new legislation, so use the coming months to highlight its introduction across all levels of your organisation. Appointing an individual within your company, who can respond to any questions staff may have, will help ensure relevant information is effectively communicated.
• Make sure your business is covered: In the event of a fatal accident in the workplace, it’s critical that you have appropriate insurance. Seek expert help if you’re unsure about your current level of business cover.