Companies could face fines of more than £20m for health and safety offences under newly published penalty guidelines.
The proposals, presented through draft sentencing guidelines, suggest that future fines imposed on companies found guilty of corporate manslaughter, health and safety and food and hygiene offences should receive fines proportionate to the size and turnover of the company. This could mean fines of up to £20m for the largest of corporations.
The draft was written by the courts’ sentencing watchdog, the Sentencing Council, and refers to a wide range of incidents in which large corporations have been guilty of manslaughter, including death by falling scaffolding and a gas leak caused by an unregistered gas fitter.
Typically, health and safety has related primarily to smaller matters, such as a fall in the workplace. However, the UK’s litigation culture is changing, and against the backdrop of the recession accountability for large corporate mishaps is increasing.
Statistics from the health and safety executive for 2013/14 show that 133 people were killed at work and 70 members were killed in accidents linked with work. However, the draft highlights the current discrepancy of economic consequence between large and small corporations.
“Fines should be big enough to have a real economic impact which will bring home to the offending organisation the importance of achieving a safe environment for those affected by its activities,” the draft states.
Meanwhile, Michael Caplan, QC, a member of the Sentencing Council, said: “We want to ensure that these crimes don’t pay. They can have extremely serious consequences and businesses that put people at risk by flouting their responsibilities are undercutting those that play by the rules and do their best to keep people safe.”