Corporate fines up 18% in one year

The value of the average health and safety fine rose 34% to £311,343 in 2017, up from £232,451 in 2016. 

The Sentencing Council introduced tougher guidelines for the fines in February 2016, focusing heavily on the level of management culpability for risk of, or actual, harm. Also taken into account are the profitability of the company in question, the potential impact of the fine on employees, and on the company’s ability to make restitution to victims. 

Thomson Reuters Legal Business says health and safety breaches can range from an isolated, minor failure to comply with proper processes, to a company deliberately disregarding the law or ignoring concerns raised by employees about dangerous working practices.

Thomson Reuters Legal Business says that fines are being increased as part of efforts to get health and safety recognised as an issue to be dealt with at board level.

In response to the implementation of the guidelines, Thomson Reuters developed a ‘Corporate Convictions Tracker’ for use by in-house legal teams in the UK. Recent examples of companies fined, identified by the Thomson Reuters ‘Corporate Convictions Tracker’, include: 

• A plant hire company and a pallets manufacturer were fined £2.5m after a worker was killed;
• A large household goods retailer was fined £2.2m after an employee was left seriously injured;
• A multi-national steel manufacturer was fined £1.3m when an electrician was killed;
• An intruder alarm manufacturer was fined £140,000 when an employee was seriously hurt;
• A food manufacturer was fined £300,000 after an employee was severely injured when cleaning machinery 

Head of business crime and investigations at Thomson Reuters Practical Law Morag Rea said, “Fines for health and safety breaches continue to rise considerably, as companies are held increasingly accountable for failing to adhere to standards.

“The rise in the value of fines shows the significant financial costs for businesses if health and safety regulations are breached – the rise comes as part of attempts to get the issue on the board level agenda.”

GRAPH: The number of fines relating to health and safety breaches has increased 18% in the last year, as health and safety remains a threat to businesses.