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day-to-day mechanics of the new corporate manslaughter law are simply not known yet



Many of the day-to-day mechanics of the new corporate manslaughter law are simply not known yet, but finance directors could come into the firing line, as we look at some of the key facts driving the fleet risk debate, says Ashley Martin

Organisations have less than two-months to get into gear to meet new corporate manslaughter legislation or face the consequences of an unlimited fine and detrimental media coverage.

Successful prosecution under the new corporate manslaughter and Corporate Homicide Act could run into millions of pounds, although the pecuniary costs could be dwarfed by damage to employer reputation.

But road risk experts say that the new law that comes into operation on 6 April this year asks nothing more of organisations than they are already legally obliged to do under a raft of legislation such as the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999.

But leading fleet industry solicitor David Faithful, of law firm Lyons Davidson, suggests that small and medium-sized firms in particular, may be turning a blind eye to the legislation. Faithful, also an advisory board member of automotive-led road safety charity RoadSafe, which is managing the government's 'Driving for Better Business' programme, says that "the cost of compliance is not great, but the cost of non-compliance is enormous, [with] much of [the expenses] hidden in other areas of business." Therefore, managing Occupational Road Risk in accordance with the law is as much a financial issue as a corporate responsibility issue.

Effective management of Health and Safety must be a key business goal in every organisation, according to Roger Bibbings, occupational safety adviser at the Royal Society for the Prevention of Accidents (Rospa), and it must be led from the top with clear reporting on performance to all stakeholders. "The new Act makes clear that the full weight of criminal law will be brought to bear on organisations of all sizes that [by act or omission] cause death."

Organisations that can show they have taken all reasonable steps to manage risks, and have effective Health and Safety management systems in place, have nothing to fear from the new law.

The starting point for directors of organisations that run business vehicles and have yet to implement Occupational Road Risk management policies should be the Health and Safety Executive's document driving at work - managing work-related road safety guidance (accessible by visiting www.hse.gov.uk/ pubns/indg382.pdf (http://www.hse.gov.uk/%20%20pubns/indg382.pdf)).

Dubbed the 'bible' for managing all at-work drivers, including staff who drive their own cars on business, it details the safety steps directors and senior managers should take to responsibly manage driving at work.
 
The key to mitigating the risk of prosecution is a formal written risk assessment of drivers, vehicles and journeys. That then becomes the focal point as to whether enough actions have been taken to ensure safe working practices or whether interventions need to be put in place to minimise the risks posed. "This may require a management change whereby responsibility for Health and Safety will have to be demonstrated from the managing director down; this is a prerequisite of avoiding a prosecution," says Faithful.

Every employer, says Faithful, should have a nominated director or boss responsible for corporate Health and Safety including at-work driving and that could be the finance director. In the event of a serious road crash the director will be involved in lengthy and detailed discussions with investigating police officers and lawyers and, possibly, Health and Safety Executive representatives. And, it is not just criminal actions that may result from a serious at-work road crash, but civil claims for damages against employers are a serious likelihood. Organisations that have failed to put in place legal safeguards may find themselves the subject of litigation from injured employees and third parties.
 
Faithful concludes: "FDs must be aware that it is not instant gratification to achieve cost savings. Equally, spending money on risk products does not directly generate income. But by spending the money they are reducing their organisation's liability and ultimately will get a return on investment."
 
Ashley Martin