New Implications for Directors after the introduction of the Corporate Manslaughter Act 2007

The Corporate Manslaughter and Corporate Homicide Act 2007 will come into force on 6 April 2008. It makes it easier for companies to be prosecuted where there has been a serious failure in management practice since it does away with the old requirement that the elements required for gross negligence must fall on at least one company officer or director.

Under the new law an organisation will be 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 to the deceased’ (s.1(1)). A gross breach occurs where the organisation’s conduct ‘falls far below what could reasonably have been expected of the organisation in the circumstances’ (s.1(4)(b)).

Where the company’s health and safety procedures do not adequately cover the use of company cars. The company should ensure that cars are safe and that drivers are adequately insured.

Company Culture and Attitude

The new law allows the jury to take into account the ‘attitudes, policies, systems or accepted practices within the organisation’ that are likely to have led to the safety failures. This means that the company’s corporate culture will be a relevant factor when establishing liability; company’s that make excessive demands on employees, forcing them to drive whilst tired, could be held liable under the Act.

A company found guilty under the new law may face an unlimited fine, a remedial order, or a publicity order.

Liability

The new law does not impose liability on individual managers or directors, however it should be noted that they can still be prosecuted under existing health and safety legislation and common law manslaughter:

Under the Health and Safety Act 1974 an employer has a responsibility to ensure that employees and others are not at risk due to work-related driving activities. Where decisions are made by Directors or managers in a company they may be charged and convicted of an offence under the Act.

Further the Management of Health and Safety at Work Regulations 1999 impose a duty to manage health and safety effectively. This means that risk assessments need to be undertaken and periodically reviewed.

Employers should also be careful not to require employees to take or make calls whilst driving. It is an offence to cause or permit the use of a hand-held mobile phone when driving. (Road Vehicles (Construction and Use) (Amendment) (No 4) Regulations 2003 (SI 2003/2695)) It is also an offence to cause or permit a driver not to have proper control of a vehicle.

Guidance on work related road safety can be found in the ‘Driving at Work – Guide to Managing Work-Related Road Safety’. http://www.hse.gov.uk/pubns/indg382.pdf

For further information on this or any employment issues please contact the colemans-ctts Employment Team or email Tom Walker, partner, at tom.walker@ctts.co.uk. Telephone – 0208 296 6878