The Corporate Manslaughter and Corporate Homicide Act 2007 came into force in April 2008 and provides that unlimited fines can be imposed on organisations causing death through gross breaches of care.

The first prosecution under the Act has been brought and a six week trial will take place in Bristol Crown Court in February 2010. A recent consultation exercise was launched by the Sentencing Guidelines Council to identify the level of sentencing for corporate manslaughter convictions. These sentencing guidelines will be in place when the first prosecution is concluded.

It is suggested that the fines should seldom be below £500,000 and may be millions of pounds. In addition, there is a proposed new sanction of Publicity Orders whereby organisations will be required to make a statement about their conviction and the fine imposed. This means that the conviction will be known to shareholders and customers in the case of commercial organisations. In the case of public bodies such as local authorities, hospital trusts and police forces, the Publicity Order will mean that the local community will know of any conviction. It is also suggested that organisations may be required to put the statement on their websites. Specific issues will be taken into account in determining the level of fine which may be imposed. For instance, how foreseeable was serious injury and how far up the organisation did the responsibility for the breach go. Other relevant factors include the number of deaths and serious injury caused, failure to heed warnings, cost cutting or deliberate failure to obtain or comply with relevant licenses. The consultation exercise closes on 5 January 2010.

Employment newsletter - Winter 2009