Having previously voted against government proposals, the House of Lords has now accepted plans to reform the law in relation to civil liability. What are the implications of this change?
The proposals which were reintroduced into the Enterprise and Regulatory Reform Bill will pave the way for significant changes in relation to personal injury claims.
This will mean that in order to make their case, workers will have to demonstrate an employer’s negligence rather than rely on a breach of legislation.
In his independent report “Reclaiming Health and Safety for All”, Prof Ragnar Löfstedt raised concerns over cases where employers were found legally responsible for damage and loss “regardless of their culpability”. As a result, he recommended that regulations creating this “strict liability” should be amended in order to prevent civil liability attaching to such a breach.
Responding to the proposals which remove civil liability entirely from breaches of statutory duty, Prof Löfstedt stated:
“The approach being taken is more far-reaching than I anticipated in my recommendation and, if this amendment becomes law I hope that the Government will carefully monitor the impact to ensure that there are no unforeseen consequences.”
During the latest debate, Viscount Younger of Leckie reaffirmed Government policy, saying:
“This reform is not about reducing the number of claims made, but about establishing the important principle that employers should always have the opportunity to defend themselves against a compensation claim when they have done nothing wrong and have taken all reasonable precautions to protect their employees.”
He went on to add that this change “does not undermine core health and safety standards”.
Opposing the changes, Lord McKenzie of Luton highlighted potential pitfalls:
“The burden of proof will shift to employees, or to the family in the case of a fatality at work. There will be a requirement for more evidence-gathering and investigation, and the incurring of greater costs. In that respect there will be no lessening of the regulatory burden on employers. This change goes well beyond the issue of strict liability which the Government’s own impact assessment accepts is likely to give rise to only a small number of claims.”
The Bill is currently progressing through Parliament prior to receiving Royal Assent.
How significant is this change? Will it mean that certain employers will be more willing to take risks or does it restore balance to the claims system? Let us know your thoughts.
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