The offence is aimed at cases where management failures lie across an organisation and it is the organisation itself that will face prosecution... fines are unlimited
Corporate Manslaughter Act in brief
CORPORATE MANSLAUGHTER ACT Q&A
Lawyer Andrew Holland of Hatchers Solicitors in Shrewsbury represents organisations charged with criminal or regulatory offences. Here, he answers the most frequently asked questions about the new Corporate Manslaughter Act which came into effect in 2008
What is Corporate Manslaughter?
A new offence for convicting an organisation where a gross failure in the way activities were managed or organised results in a person’s death. A new approach will be adopted by the courts who will look at the management systems and practices across an organisation. This will provide a more effective means for prosecuting the worst corporate failures to manage Health and Safety properly.
Why has it been brought in?
It has not previously been possible to pierce the corporate veil of a company to successfully convict a large- or medium-sized organisation for Corporate Manslaughter. The past decade is littered with failed attempts to prosecute in these situations. It is now highly likely that such organisations will be in the forefront of prosecuting agencies’ minds post-April 2008.
When was it effective from?
April 6, 2008 across the UK.
What is classed as an ‘organisation’?
Essentially a corporation, partnership, trade union or employer’s association that is an employer.
What are the penalties?
Organisations will face unlimited fines. It has been suggested by the Sentencing Advisory Panel that fines should be in the range of 2.5 per cent to 10 per cent of average annual turnover. The courts can also impose Publicity Orders requiring an organisation to publicise details of its conviction. Remedial orders can be imposed too, ordering the organisation to take steps to address the failures behind the death.
Will it affect me?
It will affect you if you are an organisation. The offence is aimed at cases where management failures lie across an organisation and it is the organisation itself that will face prosecution.
If I am a director or senior manager am I safe from being prosecuted?
Individuals can already be prosecuted for gross negligence manslaughter/culpable homicide and for Health and Safety offences. This new Act does not change that area of law at all. Prosecutions against individuals will continue to be taken where there is sufficient evidence and it is in the public interest to do so.
How can a prosecution be avoided?
By managing risks and not being risk adverse. You should remember this new Act does not bring with it any new duties. The existing law remains and the duty of care owed to individuals is the same as it always was.
What is the ‘Duty of Care ‘?
Duty of Care exists, for example, in respect of the systems of work and equipment used by employees (includes such things as cars and mobile phones), the conditions of workplaces and worksites.
So what will the courts be looking at in a case?
Courts will look at how the fatal activity was managed or organised throughout the organisation, including any systems and processes for managing safety and how these were operated in practice.
In reality what is likely to happen with this new law?
As police investigations increase, more individuals will be caught up in the process resulting in more arrests and therefore more convictions.
What should be done to prevent any of this happening?
Review all organisational work practices, procedures and activities and make sure they are as tight as possible.
Andrew Holland (a.holland@hatchers.co.uk) is a partner at Hatchers Solicitors and heads the criminal defence team. He can be contacted in office hours on 01743 237678. Or, if you need immediate advice at a police station, out-of-hours on 07654 590618.
CORPORATE MANSLAUGHTER ACT SEMINAR - find out the full details of the Act and how it will affect your business. To enquire about our seminar, run in-house at your premises, please contact Angela Manley on 01743 248545 or a.manley@hatchers.co.uk
