Company car providers face tougher laws
19 November 2007
- Corporate manslaughter fines set to grow
- Fines could be 10% of a firm's annual turnover
- Firms whose employees drive for work at risk
Businesses that provide company cars are expected to be liable for tougher corporate manslaughter penalties from next year.
The new Corporate Manslaughter and Corporate Homicide Act is due to come into effect from April 6 next year, but is open for consultation until February 7.
The law will also apply to firms that allow employees to use private cars for company business.
Under the law, organisations found guilty of corporate manslaughter when one of their drivers is involved in a fatal car crash could face fines of between 2.5% and 10% of their average annual turnover, which could run into millions of pounds.
Following the consultation deadline, the Sentencing Advisory Panel will give its recommendations to the Sentencing Guidelines Council, which will draw up the final rules for judges.
In addition to fines, companies may be forced to place advertisements in newspapers, television or radio, and send letters to shareholders and customers, admitting the mistakes.
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