New sentencing guidelines issued for safety breaches

The Sentencing Guidelines Council (SGC) has published a
definitive guideline on the sentencing of corporations for
corporate manslaughter under the Corporate Manslaughter
and Corporate Homicide Act 2007 and health and safety
offences which result in death contrary to sections 2 and 3
Health and Safety at Work Act 1974 (HSWA)

Organisations can already be
issued with an unlimited fine or
be forced to improve safety in
the workplace however the new
guideline will also apply to health and
safety cases other than corporate
manslaughter cases where it can be
proven that the offence was a significant
cause of death and not simply that a
death occurred.

The guidelines mean that on or after 15
February 2010, companies which do not
adhere to health and safety regulations
and breach their duty of care towards
employees will face punitive fines. The
Sentencing Guidelines Council has said
that fines for companies and
organisations “may be millions of pounds
and should seldom be below £500,000”.

It recommends that for other healthand-
safety offences that cause death, fines
from £100,000 up to “hundreds of
thousands of pounds” should be imposed.

Significantly, the levies will also apply
to incidents which happened many years
ago if it can be proven that firms
committed gross management failures
which resulted in injury or death.

Additionally the Courts will now be
able to issue publicity orders requiring
that companies detail any prosecutions in
“virtually all cases” of corporate
manslaughter.

Justice Minister Maria Eagle stated:
“Fines hit irresponsible companies in
their wallet, but public image is also
extremely important. Forcing
corporations and organisations to
publicise their conviction will be a
powerful deterrent, making them think of
the reputational as well as financial risk of
not taking their health and safety
responsibilities seriously.”
The use of publicity orders thought to
be the first of their kind to be introduced
in the UK, could compel companies to
inform shareholders,
customers and the
local population
(where
prosecution
involves local
authorities, hospital
trusts and police)of any such conviction,
giving details of the case, the fine imposed
and any remedial work that they have
been ordered to carry out. A publicity
order could also require the organisation
to publish a statement via its own website
or to place an announcement via the
media.

A charge of corporate manslaughter
can be brought against any organisation if
the way in which an organisation’s
activities are managed or organised causes
a person’s death; and amounts to a gross
breach of a relevant duty of care owed by
the organisation to the deceased. A
substantial part of the failure must have
been at senior level.

The offence applies to all companies
and other corporate bodies. It also applies
to partnerships and to trade unions and
employers’ associations, if they are an
employer, as well as to government
departments and police forces.

The guidelines announced coincide
with new research from the Department
for Business, Innovation and Skills (BIS)
indicating that small businesses are
suffering from a lack of confidence and
awareness of managing employment law.

The BIS study shows that almost a
third (32%) of the total sample report feel
confident in their understanding of
employment law and their role as an
employer but 34% of respondents feel
employment law obligations are ‘not
relevant’ to their business and a further
20% report that they understand their
obligations but worry about getting it
right.

Experts estimate that there may be a
dozen prosecutions each year, but the
Health and Safety Executive states that
managers can avoid this by regularly
reviewing and updating their safety
measures.