Corporate killer clampdown

How does the new law differ from what existed?

Previously it was virtually impossible to convict a company of corporate manslaughter. An individual had to be proved to be the directing mind, which was only possible for very small businesses. The new act means that a company could be found responsible if someone has been killed as a result of the gross failure of the company’s senior management.

Can individuals be sent to jail?

No. This was a cause of great disappointment for the unions when the act was passed last summer. However, if gross negligence is proved, individuals could be prosecuted and jailed for manslaughter under common law.

So who is a senior manager?

This is up for debate. The act says someone who plays a significant role in decision making. It will vary from company to company.

What is gross failure?

The court will consider whether the company’s conduct fell far below what could reasonably be expected of it, whether health and safety legislation has been breached, and how seriously. It will look at whether company culture and practices could have led to the breaches.

What are the penalties?

Companies can receive unlimited fines – guidelines suggest up to 10% of turnover – and be ordered to publicise the offence in the press and company reports.

What should companies do?

Work out who might be considered a ‘senior manager’ and make sure they have the right training. Check your insurance cover, and consider insurance and indemnity policies for staff who might need legal support during proceedings.