The first ever conviction of a company for corporate manslaughter emphasises the fact that organisations should collaborate with their HR departments in their approach to accidents and health and safety at work. Company HR departments will have a critical role to play in preventing future liability. Whistleblowing claims may follow a corporate manslaughter incident if employees suspect continued malpractice. Cotswold Geotechnical Holdings is the first company to be charged with gross negligence under the Corporate Manslaughter and Corporate Homicide Act of 2007.
The company failed to adhere to stringent health and safety guidelines, which amounted to a gross breach of duty of care owed to the deceased and as a result have been fined £385,000 to be paid over the next 10 years. The accident occurred in September 2008, while geologist Alex Wright was taking soil samples from a deep, unsupported trial pit.
Since 1965 companies have been subject to manslaughter proceedings and there have been many high profile cases where corporations have been brought to trial prior to the Royal Assent of the Act. One of the most memorable was the Clapham Rail disaster that claimed the lives of 35 passengers in 1988 when three trains collided. The British Rail Board acknowledged liability for the accident which was caused due to careless work carried out by signal workers. As the board was responsible under the regulation of vicarious liability, it paid compensation extending to £1 million in some cases, but no one was prosecuted for manslaughter.
The Act came into effect in April 2008 and only applies to deaths that occurred after that date. Fatalities that happened before 6 April 2008 will continue to be covered by the previous law on corporate manslaughter. The Act specifies a new offence for convicting organisations where a gross deficiency in the way activities are organised or regulated, results in a person’s death. Before the law came into effect, employers had an opportunity to thoroughly consider how they manage risks. The offence is not part of health and safety law and does not require organisations to comply with the new regulatory standards. However they must ensure they are taking the appropriate action to meet current legal duties.
Health and safety legislation under the Act includes workplace safety as invoked by local authorities and the Health and Safety Executive (HSE). Corporate manslaughter cases are prosecuted by the HSE, and in court jury panels are required to consider violations of health and safety legislation in ascertaining liability of companies for corporate manslaughter. Company health and safety practices, systems and policies will be closely scrutinised to determine how serious breaches in conduct have been. In the case of Cotswold Geotechnical Holdings its conduct fell well below what was expected and it was found guilty.
Employers have a responsibility for the health and safety of their employees. If after an employee has approached their direct/line manager, safety or trade union representative about a risk to their health or the health of others and are not satisfied that it has been adequately dealt with, the Public Interest Disclosure Act 1998 is there to specifically protect them if they decide to blow the whistle about wrongdoing. The Act applies where an employee has justifiable knowledge that their disclosure demonstrates one or more of the following breaches:
Most corrupt, illegal and immoral practices go undetected within an organisation, because employees, aware these things are going on, fear the consequences of reporting them through existing internal channels. International outsourced whistleblowing hotlines are one of the most successful tools for encouraging employees to report fraud, theft, compliance and ethical issues and other misconduct; helping businesses meet their corporate governance responsibilities. Addressing such issues before they impact the reputation and operations of your business is paramount in the overall success of your organisation.
During 2010, Expolink compiled its own statistics on incidents regarding organisational process problems, duty of care and health and safety issues. These reported incidents amounted to 24% of all calls the hotline received during a one year period. While a whistleblowing hotline encourages employees to report such occurrences, companies and employers need to put preventative measures in place and address issues to decrease these statistics.
Contact us to find you more about how Expolink can help give employees the peace of mind they need to speak out about malpractice in the workplace.
View our update on the Corporate Manslaughter Act (March 2012).
