Corporate Manslaughter and Corporate Homicide Act

Corporate liability under the spotlight as new law is introduced

The Corporate Manslaughter and Corporate Homicide Act, which comes into play on 6 April, is sending a ripple of activity through HR communities.

The new law provides a more effective basis for corporate liability, making it easier legislation governing corporate liabilityto prosecute organisations when gross failures in the management of health and safety lead to death, and rectifying a key defect in the previous law, in which organisations could only be convicted of manslaughter if a "directing mind" at the very top of the company was personally guilty for the death.

According to the ministry of justice, the reasoning behind the new Bill is that the previous law failed to reflect the reality of the decision-making processes of large organisations, and therefore failed to provide proper accountability and justice for victims.

This law will ensure that there is proper accountability - when very serious management failings lead to people being killed. This is not about over-regulation. Businesses should see this as an opportunity to make sure they have proper arrangements in place for managing health and safety. It is crucial for the people they employ and their customers that they are responsible and successful corporate citizens. Justice Minister, Maria Eagle

The Ministry of Justice has emphasized that the new offence is about corporate liability throughout the organisation, and should not be confused with increasing liability for individual directors or managers who can already be held to account through health and safety laws and the common law of manslaughter. So where does this leave the HR department?

Gearing up for the new Bill

For an organisation to be prosecuted, it won't be necessary for the management failure to have been the sole cause of death. The prosecution will, however need to show that the death might not have occured if it weren't for the management failure. So what can you do to protect your organisation's interests?

  • Train and update anyone in your organisation who could be considered a Senior Manager.
  • Provide training in health and safety responsibilities for these managers, and ensure the principles are applied to the workplace.
  • Continually review and update your disaster management-, and health and safety policies to ensure that the standards set are both defensible and achievable.
  • Ensure that your insurance cover includes legal protection in the event of corporate manslaughter charges.
  • Also consider insurance and indemnity policies for employees who may need legal support during an investigation.

Organisations found guilty under the new legislation will be liable to a fine, a remedial order and a publicity order.

If you'd like to know more about the legislation compliance service Ceridian offers, contact us, and an adviser will assist you.

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