The new Corporate Manslaughter and Corporate Homicide Act 2007 comes into force on 6th April 2008 with the aim of making it easier for the UK authorities to prosecute companies when death occurs, and the company’s activities are managed or organised in a way that amounts to a gross breach of a relevant duty of care. Given the seriousness of this offence, it is worth TCM’s and corporates revisiting their travel policy and its implementation to ensure proper risk assessments are carried out in connection with business travel activities.

The New Offence

The offences are committed by an organisation (including a corporation, a partnership or LLP) but not by an individual. Whilst individuals may be guilty of Health & Safety offences, the target of this new legislation is the corporate itself. The offence occurs if a death is caused, or is a consequence of a gross breach of a relevant duty of care owed to the person who has died. Section 2 defines “Relevant Duty of Care” which includes a duty owed by employer to employees; a duty owed as occupier of premises; or a duty owed with the supply of services. Accordingly, the Act will specifically apply to corporates in the way they arrange activities (including travel) for employees, and TMC’s in connection with their organisation of travel services for event participants and travellers.

Jurisdiction

Section 28 of the Act states that it extends to England and Wales, Scotland and Northern Ireland, if the harm resulting in death is sustained in the UK. Accordingly, there is doubt it will extend to deaths which occur overseas.

Risk Assessment

An area of obvious high risk clearly covered by the scope of this new legislation is the Meetings, Incentives, Conferences and Events Sector. Here, the duty of care may be twofold – both a duty to employees, or delegates the subject of the provision of a service, together with duties owed as occupier of premises, where the activity is to take place within the UK.

Risk management requires the corporate/TMC to anticipate the risks involved in their activities, and the potential for harm, and then by using a structured approach to prevent or minimize the risk. For events, it is not merely the TMC’s client and the corporate’s employees who might be affected – there are also contractors, performers, members of the public, potential trespassers, local residents and other people who may be invited to attend, as well as the safety of equipment and the venue itself.

Due Diligence

Part of the process of reviewing operations and the travel policy should be to consider the health and safety compliance of all suppliers, including venues, hotels and other service providers. Events organisers should consider a safety plan where an event is to be staged, what hazards there might be at the location itself, and compliance with all local Health & Safety standards and laws, regulations and licensing. Any equipment used should be assessed as safe. Dangerous activities, or extreme sports should be avoided where any death will be seen in the context of a high duty of care to ensure that the activity is properly managed. It will be particularly important to arrange high quality insurance to ensure that the risks are covered and the company and its directors can be properly represented and advised if there are any accidents or claims made.

Risk in Business Travel Generally

Whilst there is serious doubt whether the new Act will extend to deaths overseas, a good travel policy should not distinguish between domestic and overseas trips and activities. Particular areas of greater risk may include some of the following:

• Monitoring of potentially dangerous overseas destinations
• Continuing review of FCO Travel Advisories and review on destinations safety and health issues and providing this advice to the traveller
• Careful review of the office environment for employees, visitors and others
• All meetings, incentive, conference and events activity to be carefully risk managed, particularly in the UK market.
• Monitoring and checking the Health & Safety pedigree and insurance coverage of all known suppliers, particularly where risk is greater such as with transport companies.
• Implementing a system for compliance with health and safety legislation, and ensuring breaches are not tolerated.

Those who only organise trips and events overseas should not relax. Plans are afoot to introduce risk assessments for all overseas trips, and therefore corporates and TMC’s should consider how their travel policy protects all of their travellers and employees on a worldwide basis. Business travellers should expect a travel policy to check all known risks to their personal safety before they travel.