Corporate Homicide
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Although the Corporate Manslaughter and Corporate Homicide Bill looks likely to become law in 2007, companies that comply with existing health and safety legislation have nothing to fear. Tom Whitney reports
Workplace fatalities are not as rare as you might think. According to the Health and Safety Executive, 220 employees died at work and 117 members of the public lost their lives because of work-related accidents in the UK between 2004 and 2005.
Currently, under the Health and Safety at Work Act 1974, employers whose negligence leads to the death of an employee or a member of the public can only be convicted where there is sufficient evidence to prove individual members of the senior management team were guilty. To date, only seven small businesses have been convicted. "Currently, individuals can be held liable for negligence under health and safety laws, but the business as a whole may get away with it," explains Croner Consulting senior health consultant Nasar Farooq. New bill "The new bill - which will only apply to limited companies - will change the law so that the company as a whole or a group of its directors can be blamed for any negligence," he adds. "These changes are likely to become law early in 2007. "Companies found guilty of corporate homicide will face an unlimited fine, as well as a remedial order requiring the company to address the cause of the fatality," warns Farooq. When introduced, the Corporate Manslaughter (as it is known in England, Wales and Northern Ireland) and Corporate Homicide (in Scotland) Bill will give the courts the power to decide whether collective failings of a company's senior management team amount to a gross breach of the company's responsibility to protect the health and safety of its employees and the public. The Government has stated examples of such breaches will include failure to: ensure that staff have adequate health and safety training; check equipment is in a safe condition; or that lifts are appropriately maintained or that adequate fire precautions have been taken. Health and safety policy "Companies that already comply with existing health and safety legislation have nothing to fear from the bill," says Farooq. "But, as a statement of good intent, it's a good time for them to review their policies. "Company directors need to ensure that their health and safety policy is up to date and that it is comprehensive," he continues. "The board of directors should also accept collective responsibility for managing health and safety in their company. They need to make sure it is a priority on their boardroom agenda." By law, you are obliged to have a health and safety policy. If you employ five or more people it must be documented. Most businesses set out their policy in three parts:
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