Companies and managers can now be held directly responsible for their employees’ negligent actions following the coming in to force of the Corporate Manslaughter and Corporate Homicide Act 2007 on 6 April 2008.

In terms of the use of company vehicles, the obligations imposed on employers go much further than those imposed by previous legislation and relate not only to vehicles provided by the employer but also to an employee’s own vehicle if it is used for work purposes. Employers must ensure that such vehicles are adequately insured for business use, are roadworthy and that the employee has a valid driving licence.

It is important to note that the new legislation affects all employers, from small to large businesses, as well as public sector employers. Small firms could be particularly affected as they often rely on managers using their own cars for work purposes and they may wish to consider offering a company car as an employee benefit on the basis that at least they can be satisfied that the vehicle is properly insured, has an MOT and is fit for use.

The new legislation means that the Police, in some cases jointly with the HSE, are likely to become more actively involved in investigating whether or not employers have carried out basic checks such as whether or not their employees have a valid driving licence. Where an employee is stopped by a police officer whilst driving in the course of their employment and has committed a driving offence such as using a hand-held mobile phone, the police can request a meeting with a director of the company. They can ask to be shown what risk assessments have been carried out, what policies are in place, and for evidence of training. If an employer fails or refuses to cooperate they can be issued with improvement notices and fines of up to £20,000 in the Magistrates Court or an unlimited amount in the Crown Court. Fines can be often be imposed both on companies and directors/managers personally.

If an offence committed by an employee whilst driving in the course of their business leads to loss of life, the company can be prosecuted if the offence came about because of the grossly inadequate way in which the company’s activities were managed. For example if an employer required an employee to drive long hours or simply failed to monitor the number of driving hours being undertaken. If found guilty of corporate manslaughter, a company faces unlimited fines. Additionally the Court can require publication of the offence, and specify the manner in which it is published. This is likely to tarnish a company’s reputation. If a company has properly carried out risk assessments, has satisfactory policies, keeps administration up to date and provides ongoing training, it will be in a stronger position to defend itself.

It is essential that if employers have not yet taken the following measures they take immediate steps to do so:

1.   Carry out a full and documented risk assessment

1. Set up administrative systems to check that employees have valid driving licences, that they are adequately insured, and that the vehicles they drive are roadworthy. These checks need to be repeated regularly. If this task appears too onerous then specialist checking companies exist and can help to ease the process.

1. Set up policies relating to driving at work, making it clear that any breach constitutes a disciplinary offence, provide ongoing training and back this up with relevant training records.

Employers ignore the potential consequences of not complying with the new Act at their peril. Unfortunately many businesses do not appreciate the extent of the changes, nor the fact that every employer is affected and not just the big corporations.

If you would like advice on how to comply with the new legislation or find yourself under the scrutiny of the police or facing prosecution then please contact Jeremy Scott, a specialist solicitor at roadtrafficlawdirect.com.