p5-14 News:Layout 1 14/04/2009 12:34 Page 14
LEGAL NEWS
New corporate manslaughter
offence could prove costly
Guy Bastable, specialist
corporate defence partner in the
Business Crime & Regulation
department of London law firm
BCL Burton explains the scope
of the new criminal offence of
corporate manslaughter
C
ompanies could be fined between 2.5%
and 10% of their turnover for committing
the new offence of corporate
manslaughter.
For some companies, it could mean fines of
hundreds of millions of pounds.
“
Police will now
investigate a work-
Courts may also impose a publicity order, which
related death, not only
requires the organisation to publicise in a with a view to
specified manner the fact that it has been
convicted of the offence, the specified
prosecuting the
particulars of the offence, the amount of any organisation for
fine imposed, and the terms of any remedial
order made.
corporate manslaughter
It is anticipated that the Sentencing Guidelines and a breach of health
Council will be issuing its
guidance for the court, later this year.
and safety legislation, but
The new law is designed to increase the amount also with a view to
of convictions of corporate
manslaughter by removing the necessity to
prosecuting directors and
identify and establish the guilt of a employees for gross
directing mind.
It instead focuses on "management failure",
negligence manslaughter
referring to the way in which the organisation's and secondary liability
activities were managed or organised.
Justice Minister, Maria Eagle, said: "We are
for breach of health and
sending out a very powerful safety legislation by the
deterrent message to those organisations which
do not take their health and
organisation
safety responsibilities seriously.”
Companies should be aware that the police will
now investigate a work-related death, not only corporate manslaughter and a breach
”
of health
with a view to prosecuting the organisation for and safety legislation, but also with a view to
prosecuting directors and employees for gross
negligence manslaughter and secondary liability
The Corporate Manslaughter and Corporate for breach of health and safety legislation by the
Homicide Act 2007, which came into force organisation.
on April 6, 2008, creates a new criminal This situation has been compounded by the
offence, which in England and Wales and coming into force of the
Northern Ireland is called “corporate Health and Safety (Offences) Act 2008 which, for
manslaughter” and in Scotland is called the first time has made most
“corporate homicide”. health and safety offences imprisonable, rather
The Act was brought into force against the than merely punishable by a
backdrop of a number of high profile failed fine, and increased significantly the maximum
prosecutions of companies, particularly fine for certain breaches.
those relating to public disasters, and in Now, more than ever before, it is imperative that
order to remedy the perceived failings of organisations and individuals caught up in an
the common law offence of gross investigation following a work-related death
negligence manslaughter when applied to obtain expert legal advice from those
companies. experienced in dealing with the unique problems
The Government hopes that it will ensure that arise when advising a company, its directors
that there is proper accountability when and its employees.
management failings lead to people being
killed. For more information call BCL Burton on 020
7430 2277, email gbastable@bcl.com or visit
www.bcl.com
| 14 | April 2009 www.printwearandpromotion.co.uk
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