Announcement

20 December 2006

Proposed UK Corporate Manslaughter Act may have World-Wide impact on the Corporate Travel Industry

-- ACTE members should be aware of issues of corporate liability, policy setting, and responsibility emanating from business traveler actions in light of the proposed Corporate Manslaughter and Corporate Homicide Act (2006) currently before the United Kingdom House of Lords.

Under the proposed act, an organization may be found guilty, and liable as a whole, of corporate manslaughter in England and Wales (corporate homicide in Scotland) if “senior management” is found guilty of playing a “significant role” in the decision, managing, or organization of the activity that causes an individuals death within the U.K. and amounts to a gross breach of a relevant duty of care.

Implications of liability to the corporate travel industry may include:
• Lack of corporate policy relating to overnight stay after significant road travel due to work related events.
• Failure to consider and implement regulations reducing the impact of extended-duration shifts resulting in road deaths.

ACTE encourages our members to work with their offices of general counsel to review internal policy as part of their Corporate Social Responsibility agenda in an effort to reduce work-related incidents which may lead to indictment. Of import to all ACTE member organizations, is the possible long-arm jurisdictional clause within the Act which may permit indictment of absent foreign corporations.

To read full text of the proposed Corporate Manslaughter and Corporate Homicide Act 2006 click here