Corporate Manslaughter to Personal Liability. Health & Safety Issues

 

 

More corporate manslaughter convictions expected


 

Corporate manslaughter convictions could soar following a new Act, which subjects companies to an unlimited fine, which came into force April 2008, according to risk and benefits adviser Aon.

The long-awaited Corporate Manslaughter Homicide Act 2007 comes after 10 years of campaigning by unions and other groups. Under it, companies can be convicted if the way they manage their operations causes a death - including any that are due to work-related stress - deemed to be the result of a gross breach of a duty of care. A substantial part of this breach must have occurred at a senior level.

Directors and senior managers cannot be held responsible under the Act - it is the organisation itself that faces prosecution. However, directors can still be sued through health and safety civil suits and are therefore still vulnerable.

"Armed with this new law, prosecutors could be eager to put these weapons to the test," says Tom Sheffield, technical director at Aon. "As such, this really serves as a wake-up call to businesses to update their health and safety controls for the wellbeing of their employees and the public."

 

Health & Safety Issues for Event Organisers

 

Corporate Manslaughter (see above) Issues to be considered by Event Organisers (and management at all levels) as potentially unlimited personal liability has always been present and is not a new issue.

 

The real problem is that by simply buying in the service or supply, the matter is thought to be handed wholesale over to the production company, supplier etc.

The actual situation with all services and suppliers, a level of corporate responsibility or in old fashioned jargon ‘active continuing management’ is still required as the suppliers and production companies are in effect acting as agents for the originator or ultimate owner of the event.

 

Production companies faced with the intervention of client finance department and accountants driving down costs have reacted accordingly and driven down those costs but corners are cut. At one time ad-hoc public events if they involved a theatrical build would be up to full theatre standards.

All fabrics and wood painted structures fire proofed etc. Do it yourself exhibition kits, and temporary event staff not trained in public safety evacuation drills simply add to the problems taken on by the owner of the event.

 

There is no respite from this by simply using health and safety risk assessment programmes. How can you assess something that does not currently exist and is not likely to be finished until a few moments before the first delegates arrive?

 

A way forward is to carry out ‘due diligence’ and use an incident management service, fees range from £1,000 to £10,000 depending on the complexity of the issues involved, by rule of thumb 5% of the overall budget in scope.  Developed initially for the aviation industry and marine services (cruise ships).

A full incident manual is provided which seeks to identify all current and perceived threats, it provides a secure insurance friendly framework for suppliers and production companies to work within.

 

It also provides a defence against cost cutters and a justification for not taking the cheapest quotation; a simple change to the basic terms of supply or order incorporates an insurance backed understanding that the parties all have understood read and will fully comply with the incident manual. 

The term incident is deliberate, if you refer to ‘crisis’ it is simply too late and legally places you at a disadvantage. As you acknowledge that are waiting for the crisis to happen….

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