A new offence of corporate manslaughter (corporate homicide) will come into force in the UK on 6 April 2008, the Ministry of Justice confirmed this week. The Act received Royal Assent on 26 July 2007.

The 2007 Act changes the basis on which companies are liable for prosecution for manslaughter. Gross failures in the management of health and safety, causing death, will be liable to prosecution as corporate manslaughter from April 2008.

Justice Minister Maria Eagle said: "It is extremely important that companies and other organisations take health and safety seriously. Failure to do so can have devastating consequences - not only for the families of those affected but also for the businesses involved.

"This law will ensure that there is proper accountability - when very serious management failings lead to people being killed. This is not about over-regulation. Businesses should see this as an opportunity to make sure they have proper arrangements in place for managing health and safety. It is crucial for the people they employ and their customers that they are responsible and successful corporate citizens."

Guidance to help companies and organisations prepare for the Act has now been published. It is available as a PDF here.

Key points of the Act include:

* The Act will make it easier to prosecute companies and other large organisations when gross failures in the management of health and safety lead to death by delivering a new, more effective basis for corporate liability.

* The new offence is about corporate liability, not increasing liability for individual directors or managers who can already be held to account through health and safety laws and the common law of manslaughter.

* Organisations found guilty of the new offence will be liable to a fine, a remedial order and a publicity order. The sanction of publicity orders will not come into effect until the Sentencing Guidelines Council has issued guidance on how courts should use this new sanction.

From a business continuity point of view the Corporate Manslaughter and Corporate Homicide Act is significant because it creates a new reputation risk; especially the publicity order aspects of the Act. It is also possible that fines levied under the Act will in themselves create a business continuity threat.

•Date: 12th October 2007• Region: UK •Type: Article •Topic: BC general
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