What are the implications, under the new corporate manslaughter legislation, for policies on company cars? Esther Smith, partner at Thomas Eggar, advises.
The question:
I have recently taken over the control of company cars and I am concerned about the implications under the Corporate Manslaughter Act. Do I need to write a separate policy to the H&S policy? Does it need to be included? What should the content be? Any advice would be appreciated as I have no idea where to start with this.
Legal advice:
Esther Smith, partner, Thomas Eggar
Finally, after 10 years of more focused campaigning, the Corporate Manslaughter and Corporate Homicide Act 2007 finally received Royal Assent on 26 July 2007. When the Act comes into effect on 6 April 2008, it should be easier to prosecute large and medium-sized companies for serious health and safety management breaches that lead to death. This legislation is perceived merely as a starting point in the continuing campaign to make senior managers as liable as individuals for negligent behaviour.
The senior management of a company (decision makers as well as actual managers) who play a significant role in the organisation may be liable as other individuals under this Act. The offences are indictable only (they must be dealt with in a Crown Court) and, on conviction, the organisation will be liable to a fine, which in the Crown Court will be unlimited in its value. A further point to consider would be the implications of the identification of individual responsibility and/or liability in the case of corporate manslaughter. It must be considered that this opens the door for subsequent civil litigation claims against such individuals for damages.
Unlike previous health and safety legislation, there are no duties or procedures to analyse or adopt. So there is no need to implement a new policy specifically to deal with this, although constant review and re-evaluation will be an organisation’s potential saviour should claims arise.
Esther Smith is a partner in Thomas Eggar’s Employment Law Unit. For further information, please visit Thomas Eggar.
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