Fleet Risk Consultants

The Corporate Manslaughter Legislation my have been overlooked by the small business community as it is has the word ‘Corporate’ in it. This would be a mistake, as the legislation does not discriminate between sizes of business. So what is the potential effect on the small business owner/director?

The biggest exposure to The Corporate Manslaughter Legislation for all businesses is, based on casualty figures, in the use of vehicles in connection with the business, because last year (2007) 2,943 people were killed on the UK’s roads and of that number 981 were employees who were driving as part of their work at the time of their death. As an employer you have a legal obligation under Health & Safety Legislation to identify the risks associated with driving and then develop a plan to eliminate or reduce that risk in a manner that is reasonably practicable.

Clearly not travelling at all is the safest option, but not necessarily the best option for the business. If you make widgets, you will need a sales force to sell the widget and then a delivery team to transport the widgets to the customer. Both of these activities involve travelling and more specifically driving.

With driving the main risks are:

1. The Driver

2. The Vehicle

3. The Journey

In each of these areas you will have specific issues, for example the driver may not have a valid driving licence, the vehicle may not be suitable for the task or the journey is long and stressful. You need to consider all of these aspects for your own business, as each business has different risks and different options to minimise that risk.

If we break the risk areas above into more detail we can find other areas for consideration.

The Driver:

Does the driver have a valid driving licence for the vehicle you are providing?

Do you have a documentary system for the checking of licences every six months?

Does the address on the licence match the address the driver lives at?

Does the driver need training?

Does the driver have the information required to drive in a manner that reduces risk?

The Vehicle:

Is the vehicle fit for purpose?

Is it maintained correctly?

Is it insured correctly for business use?

The Journey:

How are the journeys planned?

Are there any limits on working or driving time?

Are rest periods planned into the journeys?

The Corporate Manslaughter and Corporate Homicide Act 2007 only refers to bodies corporate rather than individuals. But as it is only an additional piece of legislation to improve the prosecution choices available under existing Health & safety Legislation and Road Traffic Legislation. The change was brought about because of the difficulty in identifying the controlling mind in larger organisation. With smaller businesses identifying the controlling mind is easier so owners/directors of small businesses could find themselves facing a jail term in addition to the liquidation of their business.

Spending a relatively short amount of time speaking to a professional in Fleet Risk Management could save you both the stress and heartache of a court appearance and prosecution and, more importantly in my opinion, the death of a trusted employee/colleague. The cost of doing things right is considerably cheaper than trying to deal with the situation once it has gone wrong. The costs of going to court, win or lose, would run to tens of thousands of pounds whereas the cost of putting together a robust Road Risk Policy and implementing it is typically less than £5,000. Based on that fact alone it makes financial sense to protect you and your business from a prosecution under Corporate Manslaughter Legislation.

Nigel Grainger

Senior Consultant

Fleet Risk Consultants