NEWS - DIRECTORS’ LIABILITY - 30.01.2008

Is the company to blame?

Why now? Research by the Health & Safety Executive shows that 20 people are killed and 250 seriously injured each week in crashes involving someone who was driving for work. Additionally, when the new Corporate Manslaughter Act comes into force in April 2008, it should be easier to bring prosecutions against companies where they have been negligent. So you can see why the police are now focusing on companies.

Old law. The old law of corporate manslaughter made it virtually impossible to successfully prosecute a company - only if its “directing mind” had been grossly negligent. And the bigger the company, the harder it was to pinpoint who the directing mind was (but don’t overlook the fact that individual directors can still be prosecuted personally if the company flouts health and safety legislation). Under the new Act a company will be guilty if its activities cause a person’s death because of the grossly inadequate way in which its activities (e.g. in relation to company cars) are managed or organised.

The link with company drivers? A company can now be convicted where the way in which its activities are managed or organised isn’t up to scratch. The Act doesn’t come into force until April, so there’s still time to get your house in order.

Tip 1. If an employee has a fatal accident which is due to working excess hours, it could trigger a prosecution (or a director could be taken to court). Every employee (even drivers!) is entitled to a minimum rest break of 20 minutes after working for six hours.

Tip 2. Introduce a driving at work policy which sets out who’s responsible for what. Have the vehicle regularly checked and make sure your employees’ licences and insurance are in order.

The next step

For a free driving at work policy, visit http://companydirector.indicator.co.uk (CD 09.08.01).