![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
HSE ENFORCEMENT WEEKLY UPDATE 16th AUG 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 21st August 2017UPDATED SCAFFOLDING DESIGN E-GUIDE RELEASED
NASC launches enhanced TG20:13 eGuide scaffold design tool
Read the rest of this article »
Posted on 14th August 2017NASC LAUNCH FREE TO DOWNLOAD GUIDANCE
Access and scaffolding guides now open to members and non-members
Read the rest of this article »
Posted on 14th August 2017HSE ENFORCEMENT WEEKLY UPDATE 9th AUGUST 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 11th August 2017NEW GUIDANCE ON UNINTENDED PLANT MOVEMENT
Industry Plant Safety Group highlights hazards and key control measures
Read the rest of this article »
Posted on 11th August 2017SCAFFOLD COLLAPSE CAUSED BY LACK OF TIES
Falling structure narrowly misses passerby and lands on parked cars
Read the rest of this article »
Posted on 11th August 2017HSE ENFORCEMENT WEEKLY UPDATE 2nd AUG 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 2nd August 2017TRAINING IN CIRCULAR SAW USE FOUND WANTING
Joinery firm failures end in serious hand injury and £230,000 fine
Read the rest of this article »
Posted on 31st July 2017HSE ENFORCEMENT WEEKLY UPDATE 26th JULY 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 31st July 2017WALL COLLAPSE CLAIMED LIFE OF WORKMAN
Failed to identify risks associated with free standing walls
Read the rest of this article »
Posted on 31st July 2017WORKMAN FELL DURING WELDING WORK AT HEIGHT
Ladder access to water tank top was insecure and slipped when used
Read the rest of this article »
Posted on 31st July 2017CCTV INSTALLER FELL BETWEEN FLOOR JOISTS
Principal Contractor and CCTV specialist failed to plan and manage risk
Read the rest of this article »
Posted on 31st July 2017FACTORY APPRENTICE FELL DURING GUTTER CLEANING
Young workman stepped back and fell 9m through fragile rooflight
Read the rest of this article »
Posted on 31st July 2017CROSS RAIL JV CONTRACTORS FINED OVER FATALITY
Firm prosecuted after concrete fall death and two other tunnel incidents
Read the rest of this article »
Posted on 31st July 2017CONTRACTORS FAILED TO REVIEW ASBESTOS SURVEY
Major companies fined £1,000,000 plus over asbestos risk during refurb
Read the rest of this article »
Posted on 31st July 2017MAJOR CONTRACTORS LAUNCH H&S ALERT SYSTEM
Build UK members share information for effective prevention of harm
Read the rest of this article »
Posted on 19th July 2017HSE ENFORCEMENT WEEKLY UPDATE 19th JULY 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 19th July 2017STRUCTURAL SAFETY BODY LATEST NEWSLETTER
SCOSS publishes reports and expert comment on a range of issues
Read the rest of this article »
Posted on 18th July 2017SAFE SYSTEM DEVISED BUT NOT IMPLEMENTED
Workman injured by goods falling from double-decked trailer
Read the rest of this article »
Posted on 18th July 2017PREVENTION PLANNING REQUIRED FOR FRAGILE RISK
Fall arrest safety netting not used to mitigate fall consequences
Read the rest of this article »
Posted on 17th July 2017MANAGEMENT OF FORMWORK NOT UP TO THE MARK
Erector fell 3m after access scaffold board failed under load
Read the rest of this article »
Posted on 17th July 2017VIBRATION UNCONTROLLED & WORKERS UNINFORMED
Engineering firm fined £120,000 over hand-arm vibration risk
Read the rest of this article »
Posted on 14th July 2017HSE ENFORCEMENT WEEKLY UPDATE 12th JULY 2017
Prosecutions and enforcement notices weekly update and analysis
Read the rest of this article »
Posted on 12th July 2017SCAFFOLDER WAS UNTRAINED AND UNSUPERVISED
Contractor and director failed to train injured workman to CISRC scheme
Read the rest of this article »
Posted on 10th July 2017WORKPLACE MANSLAUGHTER OUTCOMES SET TO RISE
Guidelines target gross negligence with serious disregard and cost-cutting
Posted on 7th July 2017
