Corporate Manslaughter Act – advice

Although the Corporate Manslaughter and Corporate Homicide Act could affect the future of your company, it is vital that you consider your options calmly, even if you feel under pressure to ensure everything is being done to protect the company and its employees.The past few years have seen a wave of frightening messages landing on fleet operator’s desks, warning of company closures, courtrooms and even jail.

However, leading figures in the industry have rightly dismissed this as blatant scaremongering.

Behind the messages of doom, there is often someone trying to sell something, ranging from driver training to license checks.

A fleet manager of a leading company said: “I would recommend that people look carefully into their duty-of-care obligations and not panic buy any products. Take your time, do your research and contact reputable sources of information to get the answers you need.

This kind of reassuring advice has been on offer for many years through organisations such as ACFO, the fleet operators’ association, which holds regular regional meetings for members where they can share concerns and best practice.

And not all suppliers are trying to scare you into signing a contract; in fact many provide excellent advice for free.

So what do the experts think you should be doing?

General Advice

Peter Blanc, regional managing director, Oval Insurance Broking

“Managers should be reviewing their existing risk management strategies to minimise risk and prevent prosecution. The Health & Safety Executive has suggested five basic principles for firms to follow.”

• Identifying hazards
• Deciding who might be harmed and how
• Evaluating the risks and deciding on the necessary precautions
• Recording and implementing findings
• Reviewing risk assessments and updating these where necessary

“Fleet managers should also ensure that procedures for vetting and inducting drivers, provision and maintenance of vehicles, journey planning and recording and investigating accidents are in place. If your firm hasn’t yet invested in vehicle telematics, now is a good time to consider it. These systems can provide managers with online duty-of-care reports that include information and driver behaviour, speed, journey times, road types, mileage and claims information. The increased potential for prosecution under the new legislation should motivate fleet managers to take health and safety management even more seriously. We’ve found that the fleets that do this invariably have better claims experience, leading to savings on insurance premiums.”

Small Business Plans

Paul Holmes, head of risk management, AA Business Services

“It is unlikely that many small firms will have a dedicated fleet manager responsible for reviewing health and safety policies, but there are some important steps to take. “Duty-of-care and the corporate manslaughter legislation mean that effective fleet management is essential for all businesses – regardless of their size. Companies with good safety policies have nothing to fear.”

• Check employees’ driving licences – Fleet managers need to be confident that their employees are legal to drive and the company is aware of any speeding points they may have incurred.
• Ensure your fleet of vehicles is roadworthy – Employers must have policies that clearly communicate the driver’s responsibility regarding the maintenance of their vehicle. Fleet managers need to be aware that they are responsible for ensuring that cars are roadworthy, and so they need to keep a tight rein on the condition of their fleets. Companies must also make sure that drivers are shown how to make these checks correctly to ensure oil levels and tyres are monitored regularly.
• Make sure you have copies of your employees’ car insurance certification to ensure they are covered for business use – It is vital that private car drivers in particular are covered for driving their car for business and have the correct insurance in place.
• Ensure all risk policies are up-to-date and reviewed – Review operational fleet policies to ensure that statements made and standards set are achievable and do not exceed legal obligations, unless there are good reasons.
• Publish a drivers’ handbook – All companies should supply a driver handbook for staff members on the road, so they are aware of the company’s driving policy. Responsible driving does not stop at the end of the working day. Forward thinking employers should communicate

Practical measures

Steve Johnson, director communications, DriveTech (UK)

Fundamentally not much actually changes regarding existing health and safety law. If you reasonable health and safety monitoring systems in place you have little to fear. Potentially the most damaging aspect of a prosecution under the new Corporate Manslaughter Act is the Publicity Order, which forces companies to publicise their failings. If in doubt call in a risk management specialist to suggest appropriate interventions.

• At the very least ensure your monitoring system tells you who is driving/responsible for all company vehicles.
• Ensure your system can establish (even if it is via expense claims) where and when a vehicle is used on company business.
• Ensure that proper license checks are carried out regularly.
• Ensure that driver risk assessments are carried out – these are a mandatory requirement under existing law.
• Ensure your driving policy is up to date and includes such items as smoking in cars.
• Ensure that all drivers sign up to the terms and conditions in your driving policy/manual.
• Consider making it a disciplinary offence if the rules regarding company vehicle usage are broken.
• Ensure that vehicle maintenance schedules are being adhered to rigorously.
•  Ensure that all non-company supplied vehicles used for company business are in fact insured for business use.
• Ensure that all vehicle changes are promptly notified to the motor insurance database.
• Check your day-to-day operational activities to assess if any action might compromise driving staff safety e.g. banning office-based staff from phoning drivers’ mobiles while they are on the move.

Public sector

Geoffrey Bray, chairman Fleet Support Group

Even more than most private businesses, councils will be at risk. Legal pressure is mounting on all employers to impose a safety discipline rigid enough to protect a business (and its management) from prosecution. Absolute compliance is the best protection against manslaughter.

• Do you have a record of all vehicles driven on business – company and privately-owned cars? If you don’t know, how do you know if they are fit for purpose?
• Are cash opt-out drivers allowed the car of their dreams or are management controls in place to ensure vehicles are suitable for the job required?
• Is best practice advice provided to all drivers on how and when to carry out vehicle maintenance checks? Encourage drivers to check tyres, fluid levels etc. each time they fill up with fuel.
• Eco-driving saves fuel. With fuel prices at record levels, budgets may not be increasing just because pump prices are rising. They may also be increasing because drivers are unnecessarily ‘burning’ fuel because of their driving style.
• Driving is stressful, engenders fatigue and is the most dangerous task the majority of people will undertake in their working life. Encourage employees to consider whether each journey is essential and whether alternatives to the car are possible – public transport or video conferencing, for example.
• Employees should feel able to question what the company’s at-work driving health and safety policy is and the businesses should check that staff understands it. Road risk management should be on every board’s agenda once a month.

Author: Lee Sibbald, May 14, 2008

RSS feed for comments on this post.

TrackBack URL