Corporate killing bill starts its journey

News | HSW
01.08.2006

The government has finally introduced its much-anticipated Corporate Manslaughter and Corporate Homicide Bill into parliament. Published on 21 July, the bill should make it easier to prosecute organisations where their gross negligence has led to the deaths of workers or the public.

The bill creates a new offence of corporate manslaughter - corporate homicide in Scotland - designed to rectify a defect in current law that means that organisations can only be convicted of manslaughter if a single individual at the very top of the company is also personally liable. The government and safety campaigners believe this does not reflect the reality of corporate decision-making in large organisations; to date, only seven small organisations have been convicted.

Under the proposals, courts can consider the overall picture of how senior managers managed an organisation's activities, rather than focusing on the actions of one individual. An organisation will be guilty of corporate manslaughter if someone dies as a result of the gross failure of its senior managers, for example to ensure safe working practices or maintain the safety of their premises.

The bill also lifts crown immunity, placing crown bodies - such as government departments - and other public sector organisations on an equal footing with the private sector when carrying out similar activities. But the offence will not apply where an organisation does not owe a duty of care; nor will it apply to some public and government functions whose management involves wider questions of public policy.

Though broadly welcomed, the bill's contents have had some mixed reviews. The Centre for Corporate Accountability's (CCA) UK director, Maggie Robbins, feels it may be "fatally flawed". She said: "Despite the government's agreement in March to reconsider the 'senior manager test', the language remains unchanged." The CCA believes that the senior manager test is "so narrow as to undermine the central purpose of the bill".

Mick Antoniw of Thompsons Solicitors called the proposals a "major step forward," but added: "The government has missed a great opportunity to give the bill real teeth. The lack of any clear guidelines on penalties means that current fines are likely to be no greater than under existing health and safety law. There is also no provision for the disqualification of directors who fail to ensure their companies put safety above profit."

The TUC is particularly disappointed that the bill does not impose specific legal health and safety duties on directors. TUC general secretary Brendan Barber again urged the government to look at this issue "either through this bill or separately".

CBI deputy director-general John Cridland claimed the government had taken "a sensible approach and rightly continues to focus on collective responsibility and company liability rather than trying to hold one person accountable for a corporate failure." But he emphasised the "need for clarity in establishing whether or not a company has behaved in a grossly negligent manner". He said the government has "much work" to do to ensure "the final shape of the legislation gets the legal detail right".

Organisations convicted of corporate manslaughter/homicide will face an unlimited fine. Courts will also have the power to impose remedial orders and require companies to address the cause of the death.

The bill extends to England, Scotland, Wales and Northern Ireland, and will be carried over to the next session of parliament.