Originally published in BLG's Environment and Health & Safety Digest, Autumn 2007

The Corporate Manslaughter and Corporate Homicide Act received Royal Assent on 26 July 2007. It is expected to come into force on 6 April 2008.

The Act creates a new criminal offence of corporate manslaughter (referred to as "corporate homicide" in Scotland).

The new offence only applies to a wide range of "organisations", including companies, partnerships, Government departments and other public bodies listed in Schedule 1 to the Act, the police, trade unions and employers' associations. The new offence does not apply to individuals (including company directors and managers).

An organisation will be guilty of the new offence if the way in which its activities are managed or organised:

  • causes a person's death; and

  • amounts to a gross breach of a relevant duty of care owed to that person.

An organisation cannot be convicted of the new offence unless a substantial element of the breach lies in the way the organisation's senior management managed or organised its activities.

A "gross breach" requires conduct which falls far below what can reasonably be expected of the organisation in the circumstances. The Act lists certain factors which a jury may, and in some cases must, take into account when deciding whether there has been a gross breach.

A "relevant duty of care" is defined as a duty of care owed by an organisation under the law of negligence:

  • To employees or other persons working for the organisation.

  • As an occupier of premises.

  • In connection with the supply of goods or services.

  • In connection with the carrying out of any construction or maintenance operations.

  • In connection with the carrying out of any other activity on a commercial basis.

  • In connection with the use or keeping by the organisation of any plant, vehicle or other thing.

  • To persons held in detention or custody.

A number of sections of the Act set out certain situations in connection with public authority, military, policing, emergency and child-protection activities and specify that any duty of care that arises is not a "relevant duty of care".

The new offence is triable in the Crown Court only in England and Wales. An organisation cannot be prosecuted under the Act without the consent of the Director of Public Prosecutions.

If convicted, an unlimited fine can be imposed. In addition to imposing a fine, the Crown Court may also make:

  • "Remedial orders" requiring the organisation to take steps to remedy the breach or related matters.

  • "Publicity orders" requiring the organisation to publicise the conviction.

Failure to comply with a remedial or publicity order is a criminal offence punishable by an unlimited fine.

The new offence does not apply to anything done or omitted before the Act came into force. However, the common law of manslaughter by gross negligence will still apply to companies for conduct and events which occurred prior to the Act coming into force.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.