Negligent Companies Compensation Claims

A new tough legislation has been produced that will see companies facing criminal prosecution when gross negligence leads to the death of employees or company members as well as having to deal with compensation claims. The Corporate Manslaughter and Corporate Homicide Bill will now enable courts to consider the entire picture when it comes to assessing a company’s activity on how it is managed by its top managers rather than taking a focus on one individual’s actions.

Under the current system a company can face the reality of dealing with compensation claims which are usually covered under insurance and can only face prosecution for corporate manslaughter if evidence exists to convict a single individual. Now an organisation can face dealing with work accident compensation and prosecution following gross failure which results in the death of someone following such incidents as failure to ensure a safe working place, providing safe equipment and the provision of correct fire precautions.

Whilst a company can accommodate dealing with personal injury compensation claims through its insurance this new legislation delivers an unprecedented leap by also removing immunity once held by Government departments including public sector service such as the police force. Now as well as criminal convictions unlimited fines can be imposed.

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