Changes in legislation are becoming more and more frequent these days, and quite often having a direct effect on businesses, specifically where a lack of due diligence becomes the responsibility of senior management to be aware and act upon these changes. The alternative means risking a hefty fine.
We take a look at some of the more recent or upcoming changes that could affect you*:
Tougher sentencing for health and safety offences - The Sentencing Council’s proposals for new sentencing guidelines for health and safety offences, corporate manslaughter and food safety and hygiene offences suggest that it is likely there will be an increase in the level of fines against companies. The fines are to be calculated by reference to, amongst other things, a company’s turnover and proportionality. Higher fines are also likely to attract media attention. The guidelines are likely to come into force in late 2015 / early 2016.
What can you do? - Although representation costs and defense costs are covered by corporate legal liability policies, fines are not. It is therefore essential to ensure health and safety systems are robust and that you implement adequate health and safety measures to protect workers and the public from injury.
Zero-hour contracts – Exclusivity clauses which permitted employers to prohibit staff from working on other contracts whilst offering no guarantee of work are now banned. There are an estimated 125,000 workers currently working with the constraints of exclusivity clauses.
What can you do? - Further regulation is likely to follow and as an employer you will need to be alert to the changes or face potential financial penalties against your business and compensation awards in favour of exploited staff.
Cyber risks – Cyber security should be on every corporate director’s radar. Cyber risks can include negligent employees, hackers, malware, stolen or lost computers and mis-sent emails. If a significant breach occurs, a director may face a claim by disgruntled shareholders if it is found that a director did not adequately prioritise cyber security.
What can you do? – As Directors you may not have the relevant knowledge, and you may wish to recruit qualified personnel to proactively manage cyber security. For example, setting up a risk management committee and developing a cyber-security plan to manage potential risks.
Remember, the onus in most cases is on you to know what your responsibilities as an employer are, even when those responsibilities have only come to light recently. What affected your business 5 years ago is more than likely to have changed by now, so it pays to keep abreast of recent developments.
*Source: Hiscox
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