![PP Construction Safety logo and link to home page [1]](http://www.ppconstructionsafety.com/wp-content/themes/ppcs960/images/ppcslogo.jpg)
PARENT COMPANY LIABILITY FOR SUBSIDIARY H&S BREACHES
Court of Appeal judgement implications for potential scale of safety fines
Stephenson Harwood LLP has highlighted a recent Court of Appeal judgment on the responsibility of a parent company (Cape Plc) for the asbestos liability of a subsidiary company. SH suggest the case is significant in being the first time a parent company has been held directly responsible for asbestos exposure suffered by the employees of a subsidiary.
The Court held that absolute control of the subsidiary was not necessary for the parent to assume a responsibility to subsidiary employees. The case was “fact specific” but some of the factors which influenced the Court in finding that this responsibility existed included:
- parent involvement in health and safety issues which affected the subsidiary;
- always one or more directors of the parent on the board of the subsidiary;
- parent exercised some control over the activities of the subsidiary (including some financial control); and
- parent was aware of working conditions at the subsidiary and aware that “systemic failures” in respect of asbestos control measures were occurring.
Fine assessed on parent turnover potentially significantly higher
SH state that the judgment could have significant financial implications for some parent companies in relation to historic asbestos exposure adding that:
“The case also brings into focus group arrangements for managing asbestos and other risks. While a parent company may wish to retain some control over the arrangements of subsidiaries and ensure uniformity across the group, this will need balancing against the risk of potential extension of liability – both civil and criminal.
In particular, if the parent was successfully prosecuted for a health and safety related offence, the Court would consider its turnover when deciding on the level of any fine. A fine assessed against the turnover of a parent as opposed to a subsidiary may potentially be significantly higher.”
Latest Construction Health and Safety News
CONSTRUCTION SAFETY NEWS – END OF NEW CONTENT
The addition of content on this website ceased on 17th April 2020.
Material posted before this date can be found by clicking on our SEARCH NEWS DATABASE function.
CDM REGULATIONS 2015: GUIDES AND TEMPLATES
Summary of our advice and tools to aid CDM 2015 compliance
Read the rest of this article »
Posted on 21st April 2020HSE WARN OF NEED FOR RPE FACE FIT TEST AND CHECK
Incorrectly fitted RPE will not protect the wearer from dangers to health
Read the rest of this article »
Posted on 16th April 2020CORONA VIRUS: LATEST SITE OPERATING PROCEDURES
Industry Bodies publish risk management guidance Version 3
Read the rest of this article »
Posted on 15th April 2020TOWER CRANE OUT OF SERVICE SAFETY ALERT
Important advice from Construction Plant-hire Association and HSE
Read the rest of this article »
Posted on 30th March 2020HSE PLAN AND CONSTRUCTION PRIORITIES 2020/21
Appointed CDM 2015 Principal Designers remain focus of HSE inspections
Read the rest of this article »
Posted on 30th March 2020COVID-19 ADVICE & GUIDANCE FOR CONSTRUCTION
BuildUK support industry with advice, guidance and information
Read the rest of this article »
Posted on 30th March 2020HSE TARGETING WELDING FUME CANCER RISK
Inspections to enforce improved controls required by new risk evidence
Read the rest of this article »
Posted on 24th February 2020HSE TO OVERSEE NEW BUILDING SAFETY REGIME
Government to deliver biggest change in building safety for a generation
Read the rest of this article »
Posted on 21st January 2020FESTIVE GREETINGS TO ALL OUR READERS
Read the rest of this article »
SELECTED NEWS POSTED RECENTLY ON TWITTER
![PP Construction Safety logo and link to home page [1]](https://www.ppconstructionsafety.com/wp-content/themes/ppcs960/images/ppcslogo.jpg)
Links to other construction health and safety related news reports
HSE LOOK TO LOCAL AUTHORITIES FOR CDM SUPPORT
Council Inspectors focus on CDM client duties – asbestos, fragility and RCS
Read the rest of this article »
Posted on 14th November 2019HSE WELDING FUME REVISED GUIDANCE PUBLISHED
New research evidence on cancer link prompts revision on welding fume
Read the rest of this article »
Posted on 14th November 2019STRUCTURAL SAFETY BODY LATEST NEWSLETTER
CROSS publishes reports and expert comment on a range of issues
Read the rest of this article »
Posted on 18th October 2019HSE RISK REDUCTION THROUGH DESIGN AWARD
Regulator seeks to promote hazard avoidance and risk minimisation
Read the rest of this article »
Posted on 18th October 2019HSE START PROJECT HEALTH RISK INTERVENTIONS
Regulator set to check health risks assessed and controls in place
Read the rest of this article »
Posted on 30th September 2019AIF NATIONAL WORKING AT HEIGHT CONFERENCE
HSE Construction Head to speak at Access Industry Forum conference
Read the rest of this article »
Posted on 23rd September 2019NEW HSE HAVS CALCULATOR TO HELP CONTROL RISK
New calculator includes “cautious estimates” for common tools
Read the rest of this article »
Posted on 23rd September 2019IMPROVING CDM DESIGNER HAZARD AWARENESS
Research explores power of “multi-media digital tool” for design hazards
Read the rest of this article »
Posted on 27th August 2019DEMOLITION FEDERATION ON RECENT INCIDENTS
NFDC ‘statement of awareness’ follows unplanned collapses
Read the rest of this article »
Posted on 27th August 2019RAISING COMPETENCE AND MAKING BUILDINGS SAFER
Life-safety-critical disciplines urged to act on Interim Report
Read the rest of this article »
Posted on 27th August 2019BUILDING WORKS COMPROMISED GAS SAFETY
Company and director fined after work created risk to residents
Read the rest of this article »
Posted on 27th August 2019HSE SPEAK AT ACCESS INDUSTRY CONFERENCE 2019
AIF National Working at Height Conference November 2019
Read the rest of this article »
Posted on 6th August 2019STRUCTURAL SAFETY BODY LATEST NEWSLETTER
CROSS publishes reports and expert comment on a range of issues
Read the rest of this article »
Posted on 23rd July 2019CONSIDERING TEMP WORKS IN PERMANENT DESIGN
Useful overview for civil and structural engineers on contemporary practice
Posted on 23rd July 2019
