Corporate Risk Management Group newsflash
10 June 2008
Fines, HSE and the Corporate Manslaughter
Act
In our last bulletin we explained that the
Corporate Manslaughter Act came into force on 6 April 2008 and that
the starting point for a fine of a convicted organisation would be
5% of turnover, but that could increase/decrease within a range of
2.5 - 10% of turnover depending on the facts of the case. The
Health and Safety Executive (HSE) has released details of its
recent fines which illustrate how the new Act will mean a
significant increase in fines for deaths caused by an
organisation's activities.
In the case of Sieman Dematic Ltd and Stow
(UK) Ltd, two contractors received fines totalling nearly
£200,000 for contributing to the death of a German worker in a
distribution plant in Worksop, Nottinghamshire. Hans Zdolsek died
after he fell 28ft while working at a Wilkinsons depot on 20
February 2004.
The principal contractor for the site, Siemens
Dematic Ltd, pleaded guilty to beaching the Health and Safety
at Work Act and was fined £100,000 and ordered to pay more than
£47,000 costs. If Siemens had been successfully prosecuted
under the Corporate Manslaughter Act, the starting point for a fine
(i.e. at 5% of turnover) would have been £3,215,300.
The racking installation contractor, Stow (UK)
Ltd, also pleaded guilty to breaching the Health and Safety at
Work Act and was fined £80,000 with costs of £41,000. If Stow
had been successfully prosecuted under the Corporate Manslaughter
Act, the starting point for a fine would have been £395,450.
No more bullying and harassment
claims?
Following the recent case of Conn v
Sunderland City Council it is now going to be much harder to
bring claims for injury resulting from bullying and harassment.
For further information please
click
here.
How much training is enough?
According to the court in the case
ofAllison v. London Underground Limited
itwas what training was needed in the light of what the
employer ought to have known about the risks arising from the
activities of his business.
For further information please
click
here.
For further information, please
contact Gina Peters.