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The Corporate Manslaughter Bill has suffered a defeat in the House of Lords because it didn't go far enough.
A vote on Monday night (5 February) saw the Government defeated and the bill thrown back to the Commons.
The bill is being brought in to make directors more accountable for fatal at-work accidents.
Peers voted against the bill because they want to see police included in the bill. In the current draft, police are exempt from the bill.
Home secretary John Reid had threatened to withdraw the bill if the Lords don't give it their seal of approval. However, it is now understood the Commons will consider some further changes to the corporate killing bill.
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