Corporate Manslaughter: What You Need To Know

The Corporate Manslaughter and Corporatecauses a person's death and this amounts to a
Homicide Act 2007 comes into force on 6 Aprilgross breach of a relevant duty of care owed by
2008, and all businesses must therefore take athe organisation to the deceased.
look at their existing health and safety regulations,The shift of focus - from the 'directing mind' to
if they don't want to face an unlimited fine plussenior managers - in the new offence is
potential humiliation by 'name and shame'.considered to make it easier to obtain successful
The new offence of corporate manslaughter isconvictions.
committed where an organisation commits aWhat must businesses do now?
'gross breach' of a 'relevant duty of care', leadingOrganisations should prepare themselves for the
to a person's death. This recent change tochanges in corporate law and health and safety
corporate law and health and safety law meanslaw by undertaking a complete and thorough
that it will no longer be necessary to identify anreview of their safety management systems and
individual director guilty of gross negligence, all thatof how they are practically implemented. This will
is required is an organisational or grossnecessarily incur costs but these costs are likely
management failing causing death.to be a fraction of any potential penalty if found
What happened in the pastguilty of corporate manslaughter.
Under the existing common law provisions, toThe penalty
punish an organisation appropriately, theOf course, companies cannot be sent to prison,
Prosecution have to prove 'gross negligenceso the penalty usually imposed is a financial one.
manslaughter' by an individual who is part of theThe Sentencing Guidelines Council have suggested
'directing mind' of the organisation which caused orthat on conviction for an offence of corporate
contributed to the death.manslaughter, the court, as a starting point, should
This has proved to be an almost insurmountableimpose a fine which is equal to 5% of the
task, particularly in relation to large organisationsorganisation's annual turnover, with the ability to
where, in reality, there is no one individual whogo up to 10% or more if there are aggravating
could properly be considered part of the 'directingfactors. This would, for most companies,
mind' of the organisation.represent a very large fine indeed.
As a result, governments have long been underIn addition to a fine, courts can compel the
pressure to update corporate law and health andorganisation to 'advertise' their conviction in the
safety law in order to force businesses to belocal or national press on the basis that a 'name
brought to justice in the case of gross negligenceand shame' culture may send a message to other
leading to the death of a worker.businesses. The idea is that the stigma of being
A shift of focusconvicted of corporate manslaughter could have a
The new offence of corporate manslaughter willdevastating affect on a business, and the threat
be committed if the way in which a business'will cause businesses to take more care with their
senior managers organise or manage the activitieshealth and safety regulations.