Corporate Social Responsibility & The Environment

Corporate Social Responsibility

Executive Travel Under Scrutiny With New Corporate Manslaughter Act

We are urging companies to review their travel policy in light of the introduction of the new Corporate Manslaughter Act, effective 6th April 2008. The new law mean that all organisations and companies will be responsible for the welfare and safety of their employees whilst travelling on behalf of the company.

The Act sets out that an organisation can be convicted if it is proven to have shown a gross failure in the way which activities were managed or organised which results in a persons death. Under a new approach courts will look at management systems and practices across organisations which provides a more effective means for prosecuting the worst corporate failures. The fines are unlimited and the courts may impose a publicity order, forcing the company to publicise the case. Organisations will now have to look closely at health and safety policies and within that at their travel policy, to ensure that it outlines who is allowed to travel on company business,

which airlines and hotels can be used and importantly how the reservations are booked and tracked, and what emergency procedures are in place should anything go wrong. Travel insurance must also be checked to ensure that employees are covered for all events.

In addition, under the new Act judges can look at whether a part of a failure was at a senior level - although senior managers cannot be prosecuted under the new laws, individuals can be prosecuted for gross negligence and health and safety issues. All companies and corporate bodies in the uk are liable under the Corporate Manslaughter Act and organisations must already comply with current health and safety legislation.

For further information and advice on the new laws and what it means to your company's travel policy contact Donna Bough on 01527 541339 or email donna.bough@forwardtravel.co.uk.