Failing to prepare for the introduction of the new Corporate Manslaughter and Corporate Homicide Act could see businesses charged if their negligence results in a work-related death.
That's the warning coming from insurance company Axa, which is urging companies of all sizes to take basic steps now to ensure they comply with the new regulations.
The new act removes the need to find an individual responsible for a death but makes it easier for a company to be found guilty if actions at a senior level amount to "a gross breach of a duty of care to the deceased".
Those companies found guilty of manslaughter could face large fines as well as untold damage to their reputation.
"An effective system will take into account the risks posed to employees, customers and anyone else affected by the company's activities," said Doug Barnett, head of customer risk management at Axa.
"Involvement from the top level of an organisation will demonstrate that health and safety is a high priority. It will also help ensure that practices are implemented correctly.
"Setting up the people and processes to control these risks need not be expensive and does not have to be overly bureaucratic," added Barnett. "But what this change in the law does is to remind everyone that ignoring these risks is not an option."
Axa offers the following tips to ensure you remain on the right side of the new law when it comes into force on 6th April 2008:
- Ensure that health and safety is a top management priority by placing responsibility with the board and/or a director
- Assess the risks facing the company. Update these assessments as business operations change
- Involve employees in the risk assessment and ensure there is an effective communication process for the raising of problems and issues
- Regularly monitor and objectively assess performance
- Benchmark performance against current best practice
