The law and you in 2008

Corporate Manslaughter and Corporate Homicide Act 2007

Due: April 6, 2008

How it will affect you: Corporate manslaughter arises if the way an organisation’s activities are organised amounts to a ‘gross breach of a relevant duty of care’. It only applies to organisations, not individuals, and it means it’s no longer necessary to convict the directing mind. The main penalty is an unlimited fine and Laudy expects the HSE to receive 10-15 applications a year. He says the act is extremely important as the effects of a fatal accident on a business are huge in terms of time, cost and distress.

Measures to take: A robust accident management protocol dealing with prevention and accident investigation management is essential.

OFT Provisional Report on Collusive Tendering

Due: Spring 2008

How it will affect you: After an investigation into construction companies in England, the OFT last year uncovered evidence of bid-rigging on 3,000 tenders worth £3bn, the main focus being cover pricing. Expect a ‘statement of objections’ setting out the OFT’s evidence this spring. All companies involved will have been contacted by now, and the OFT has received 38 leniency applications which means those companies will get a 50% reduction in penalty for assisting with the investigation. Don’t feel too relieved if you haven’t been contacted, however, as the OFT has not ruled out further investigations into the construction sector. The maximum fine the OFT can enforce is 10% of an organisation’s worldwide turnover. OFT says that previous fines of 1%-2% of turnover are ‘not sufficient detriment’.

Measures to take: All firms should set up a compliance programme which sets out what the rules are with cover pricing and the exchange of commercial information. Ensure that existing and new staff receive proper training. Firms that may be involved in the current investigation should plan how they will communicate findings with the media and customers.

Working Time Directive (and other employment issues)

Due: now – from 1 October 2007

How it will affect you: Changes to the Working Time Directive mean all workers now receive 4.8 weeks paid annual leave. This will be increased to 5.6 weeks on April 1, 2009. Despite the cost implications, Laudy sees this as a positive move that could attract new workers to the industry.

Also: Immigration rules may change, possibly to a points-based system similar to Australia, making immigration tougher for industry workers who currently fill vital skills gaps.

The draft Apprentices Bill, to apply to England, is intended to give 16-to-18-year-olds entitlement to an apprenticeship, reducing the number of young people not in education, training or employment. 90,000 apprenticeships are planned for young people by 2013. Laudy sees this as a positive move provided the cost burden does not fall on one industry sector.

Measures to take: Consider planned and possible changes to legal frameworks when planning future labour resources.

Sustainability: Site Waste Management Plans, Energy Performance Certificates and Display Energy Certificates

Due: All April 2008

How it affects you: This raft of new legislation reflects the fact that construction processes and building occupation and operation account for 50% of all UK carbon emissions. Laudy comments: ‘There are great opportunities for those contractors who embrace sustainability and respond to client demand for sustainable methods and products, engage the whole supply chain and develop best practice.’

Measures to take: Get up to speed early with how to produce Site Waste Management Plans; be proactive with clients on Energy Performance Certificates.