Analysis
of the test
Not only will the new test allow the organisation
to be convicted on the basis of the conduct of a single
senior officer, it will allow the organisation to
be prosecuted in the following circumstances:
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When
any employee (representative) of the company has
committed one of the negligence offences and
a relevant senior officer of the company (or more
than one) has failed to take measures that would
reasonably be expected of him to have taken that
would have prevented this employee (representative)
from having committed the offence; |
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When
a number of employees (representatives) have acted
or failed to act in such a way such that had all
their actions and failures been the actions and
failures of one person, that person would be considered
to have committed the offence and a relevant
senior officer of the company (or more than one)
has failed to take measures that would reasonably
be expected of him/them to have taken that would
have prevented these employees (representatives)
from having committed the offence; |
There
are a number of novel aspects to this test:
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Aggregation
It introduces the concept of aggregation so that
the courts would consider a number of different
individuals within the company and add them up.
The
Government explained the introduction of this
principle in the following way:
Where
the crime is one of negligence, corporate
criminal liability should be based on the
actions and moral fault of the corporation
as a whole. It is appropriate to base corporate
criminal liability on the aggregate fault
of several employees and officers, each of
whom may have contributed to the end result.
For example, the basis of negligence may lie
not only in the conduct of the employees,
but also in managerial officers who reasonably
ought to have known what was happening or
who were not reasonably diligent in establishing
or monitoring mechanisms for compliance with
corporate policies.
This change would mean that, in a Westray
situation, it would be possible to view the
many decisions with respect to safety as a
whole. Even if it might not be possible to
show that any single person had acted in a
criminally negligent manner, it would still
be possible to obtain a conviction of the
corporation on the basis that cumulatively
there was criminal negligence. Similarly,
the corporation could be criminally negligent
if it allowed senior officials to insulate
themselves so that instances of safety violations
would not come to their attention.
However
it is important to note that a company can not
be convicted simply on the basis of the aggregation
of the failures of a number of junior level
employees. This is because in addition there
is an additional test which must be fulfilled
- which is that there must be a failure on the
part of one of more senior officers.
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New
Legal Duty
The duty is imposed on a wide group of people
- in effect anyone who has supervisory responsibilities
for work - but is likely to have particular
significance in relation to senior managers
and directors upon whom the law in many jurisdictions
traditionally imposes no duties.
The
Government explained its reasons for imposing
the duty in the following way:
The
Criminal Code imposes various legal duties
including the duty to provide the necessaries
of life for one's child (s. 215) and to use
reasonable care and skill when doing any act
that may endanger the life of another (s.
216). Moreover, if a person undertakes to
do an act, that person is under a duty to
perform the act if failing to do so would
endanger life (s. 217). Wanton or reckless
disregard of a duty which leads to death or
injury is grounds for a charge of criminal
negligence causing death (s. 220) or criminal
negligence causing bodily harm (s. 221). However,
the Code makes no explicit provision regarding
a duty of a person directing work to ensure
safety for the workers carrying out the work
or to take reasonable steps to ensure the
safety of the public.
In the Government's view, everyone who employs
others to perform work or has the power to
direct how work should be done should be under
a duty to take reasonable steps to ensure
safety of the workers and the public. The
Government proposes to enshrine that duty
in a new section 217.1 of the Code. What is
"reasonable" will vary with the
nature of the work and the experience of the
workers. The courts are well-equipped to consider
the evidence and decide on the proven facts
whether a person has shown reckless disregard
of the duty that led to death or injury.
The
imposition of the duty will make it easier to
show that a director or senior officer of a
company has failed to do something that he should
have done. Without a legal duty to do something,
it is not possible in law to prove that the
failure to act constitutes neglect. This is
even the case when a common sense explanation
of a person's conduct might be that he has committed
serious failures.
To read about the issue of Directors Duties
in Britain, click
here
The province of the Australian Capital Territory
jurisdiction has also imposed a legal duty on
senior officers of an employer. To read about
this, click
here.
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