Large corporations found guilty of contributing to the death or serious injury of an employee may be forced to publicise its wrongdoing under a new industrial manslaughter bill that will be introduced to Victorian Parliament this week.
The controversial
Crimes (Workplace Deaths and Serious Injuries) Bill, unveiled yesterday by Attorney-General Rob Hulls and WorkCover Minister Bob Cameron, will:
- allow owners or company directors to be prosecuted for gross negligence even if they liquidate or close down their companies in a bid to avoid being charged
- make it easier to prosecute larger businesses whose gross negligence contributed to the death or serious injury of an employee
- increase penalties for breaches of occupational health and safety laws.
More specifically, key features of the bill include:
Increases penalties under existing legislation
- where employers have failed to provide a safe place of work, a corporation will now face fines of up to $600,000 (up from $250,000) and individuals up to $120,000 (up from $50,000) as well as a maximum term of 12 months' jail
- where an employer has obstructed health and safety inspectors, discriminated against employees for health and safety activities, or failed to comply with prohibition notices issues by WorkSafe, maximum fines will jump to as high as $750,000 for a corporation (up from $250,000) and up to $150,000 for individuals (up from $50,000)
- current penalties for these offences of five years' jail will be reduced to 12 months to correspond with similar offences and in light of the changes proposed to the Crimes Act.
More effective criminal laws
- The new law will enable a court to look at conduct of a corporation as a whole that contributes to the death or injury, rather that just person who has 'the directing mind and will' of the corporation, as is the case under current law. A court will be able to consider and add together the negligence of any number of employees/agents/officers of the corporation and, if the combined conduct amounts to gross negligence, the corporation may be found guilty and fined as much as $5 million for a death and $2 million for a serious injury. A court also will be able to direct a company to publicise its wrongdoing, as the government believes damage to a corporation's reputation can often be a more effective deterrent than any financial penalty.
- If the company is found guilty, the new law will allow prosecutions of 'senior officers' of corporations where they knew about risks to employees' safety and did nothing about it. Maximum penalties for senior officers are $180,000 or five years' imprisonment for a death and $120,000 or two years' jail for a serious injury.
- In addition, the tougher law will make it possible to pursue senior officers of a corporation that has gone into liquidation.
The Queensland government is also considering introducing industrial manslaughter legislation.
To read more on the implications of these moves for both Queensland and Victorian businesses, see this week's bizreview new bulletin, emailed to subscribers on Wednesday evening. Call 1800 649 578 or email subs@pubserv.com.au for details.