Rising Fines For Health And Safety Breaches?

Sentencing under the Health and Safety Offences, Corporate Manslaughter and Food Safety and Hygiene Offences Definitive Guidelines 2016.

Since the introduction of the Health and Safety Offences, Corporate Manslaughter and Food Safety and Hygiene Offences Definitive Guidelines ("Guidelines") which came into force on 1 February 2016, we have seen a number of significantly increased fines imposed on Companies for Health and Safety Breaches. In the summer, Merlin, as operators of the "Smiler" ride at Alton Towers, which crashed resulting in serious injury to several individuals, were fined £5 million. The sentence would have been up to £7.5million if the Company had not admitted breaches and pleaded guilty at an early stage. The fine was referenced to the Company's turnover of around £300million.

The aim of the Guidelines is to bring more consistency to sentencing of Health and Safety offences. Previously, sentencing was fact specific and on a case by case basis, which made predicting the level of fines uncertain and hugely inconsistent. The Guidelines state that a fine "must reflect the seriousness of the offence" and "take into account the financial circumstances of the offender". Further "the level of fine should reflect the extent to which an offender fell below the standard required...it should not be cheaper to offend than to take the appropriate precautions...". In conclusion, the Guidelines aim to ensure that "the fine must be sufficiently substantial to have real economic impact which will bring home to both management and shareholders the need to comply with health and safety legislation."

The Guidelines apply in England and Wales but are being taken into consideration and applied by the Scottish Courts. The Guidelines apply to sentences after 1 February 2016, regardless of the date of the breach or offence. That means that breaches which have been slow to reach trial are still subject to the new Guidelines.

Fines for large companies, as defined, could exceed £10m for serious health and safety breaches or £20m in corporate manslaughter cases. A large company is defined as a company with annual turnover, or equivalent, of over £50 million.

How the Guidelines work

In the event of a guilty plea or where guilt is established at trial, the Court will decide an appropriate sentence by reference to nine specific steps set out in the Guidelines. This framework should ensure a much more consistent approach.

The Guidelines require the Court to...