The Government gave way following nearly six months of debates and continued pressure from unions.
So far, cases of corporate manslaughter have only been successfully prosecuted against small enterprises, where it has been possible to identify one or more ‘controlling minds’.
Under the new rules Government bodies, including the prison service, could face unlimited fines if they are found to cause death through corporate negligence. The Government hopes the tough penalties will help to focus minds on health and safety.
Justice Minister Maria Eagle said:
“The Corporate Manslaughter Bill is a ground-breaking piece of legislation. This is about ensuring justice for victims of corporate failures. For too long it has been virtually impossible to prosecute large companies for management failures leading to deaths.
“We are sending out a very powerful deterrent message to those organisations which do not take their health and safety responsibilities seriously.”
Despite the new rulings, prisoners hurt or killed in custody will not be covered for another three years.
Liberal Democrat Peer Lord Dholakia said:
“I am pleased that the Government has seen sense and committed to including deaths in custody into the Corporate Manslaughter Bill. But it is disappointing that we will have to wait a further three more years for it.”
He added that his party would continue to push for earlier implementation.
Trade union representatives have welcomed the new legislation. However, they say it does not go far enough because it means that companies, rather than individuals, face prosecution.
John McClean, GMB National Health and Safety Officer said:
“GMB feels that it does not go far enough in that individual directors and employers may still be able to evade prosecution for their negligence which results in serious injuries and deaths.”
He said his union sees the current act as the start of a longer campaign to make senior managers personally liable for companies’ negligent actions.
The Institute of Directors, who set standards for 52,000 company directors across the UK, said they are glad the legislation is finally on the statue books.
Miles Templeman, Director General, said:
“If and when, sadly, a death has occurred and it is determined to have been corporate manslaughter or corporate homicide, it will be right and proper that the organisation itself can be punished.”
Templeman added that the IoD is working closely with the Health and Safety Executive to launch a new version of the official Health and Safety Commission guidance to directors on their health and safety responsibilities.
The Act will come into force on the 6th April 2008.