Corporate Manslaughter and Corporate Homicide Act 2007

From 6 April 2008, the new Corporate Manslaughter and Corporate Homicide Act will be in force in the UK.  It does not bring any new duties for employers but does create a new offence where a ‘gross failure’ by an organisation has resulted in a person’s death.  Until now, a disproportionate number of smaller companies have been successfully prosecuted for manslaughter due to health and safety failings, however this new legislation should enable the prosecution of any company for corporate manslaughter. 

Who can be prosecuted? 

Only organisations can be prosecuted under the Act, not individuals.  To be guilty of an offence under the Act, the way the organisation is managed or is organised by senior management must have been a substantial factor in a person’s death.  The organisation must also have owed that person a duty of care (under health and safety legislation) and have been in gross breach of that duty.

This means that there must have been serious failings in how the organisation was run that contributed to the death of an employee or someone else the organisation should have protected.  This could be a contractor working on site who fell from an unprotected roof edge or a passer-by who contracted legionnaire’s disease from a poorly maintained cooling tower. 

What are the penalties?

The Act allows for a range of penalties: unlimited fines, remedial orders and publicity orders.  The last one will require an organisation to publicise its conviction and details of the offence in a way specified by the court.  This negative publicity may be more damaging to a company’s reputation than the financial impact of a large fine.

What precautions should be taken? 

To ensure that an organisation is not risking committing an offence under the new legislation, senior executives and Directors need to be content that their health and safety systems are sufficient and that the company is complying with health and safety legislation.  In deciding whether an organisation has committed an offence under the Act, juries will need to consider the health and safety systems and practices the company has in place and how these are managed in practice.  Some of the factors a court may look at include:

• the systems of work used by employees
• how much training staff have received
• whether the equipment being used is suitable
• whether supervision is sufficient
• how much training middle management have received.

More strategic issues may also be investigated including:

• whether risk assessments have been completed
• whether risk controls are adequate
• how the organisation monitors their health and safety processes
• whether health and safety is considered in disciplinary procedures
• whether any health and safety audits have been completed.  

Although no individual can be prosecuted under the new Act, for an organisation to be guilty a substantial part of the failure must be at a senior level.  Therefore senior executives and Directors may need to learn more about their responsibilities and the health and safety systems that their company has in place.  The Health and Safety Executive (HSE) actively encourages companies to identify one person to take responsibility for health and safety at Board level, thereby increasing the awareness of failures and successes at a highest level of an organisation.

How can System Concepts help? 

Although it is envisaged that a prosecution will only be bought when an organisation has fallen well short of what is deemed to be reasonable, the new Act provides an ideal opportunity for all companies to examine their health and safety management systems to ensure that they are up to standard and identify any areas where improvements could be made.  System Concepts offers tailored audit services that will identify where your company is in breach of legislation and best practice and how you can address this through pragmatic, cost effective recommendations.

System Concepts also offers two Institution of Occupational Safety and Health (IOSH) accredited training courses that increase the competency of managers: Managing Safely and Safety for Senior Executives.  We also offer specifically tailored training courses that fit your organisation’s needs.  We have award winning trainers who make health and safety training engaging and fun, as well as valuable to your employees.

Further information and guidance on the new act can be found at http://www.justice.gov.uk/guidance/manslaughteractguidance.htm