New legislation could lead to thousands of UK businesses failing overnight unless they can show compliance with employee training and health and safety rules.

The warning comes from Phil Brown, managing director of online HR toolkit creators Youmanage following the introduction of the Corporate Manslaughter and Corporate Homicide Act 2007.

The Act, which came into force on 6 April, introduces an offence that prosecutes companies and other organisations where there has been a gross failing, throughout the organisation, in the management of health and safety with fatal consequences.

 
Phil Brown said: “This new piece of legislation now makes it easier for businesses to be prosecuted in the event of an employee being killed at work.

“Before the Act was brought in, businesses could only be convicted if its policies were controlled by one individual. As most companies are headed by more than one manager it made it difficult to bring about successful prosecutions. Statistics show there have only been half a dozen successful cases in the last 16 years and none of these were against large companies.

“As of now if a company is unable to demonstrate its management systems are regularly maintained and monitored, and always adhered to, it could face closure overnight.”