‘Squeezed middle’ face increased fines
Health and Safety consultancy Southalls and international law firm Gowling WLG, warn medium sized manufacturers (£10-£50m turnover) of the significant fine risks they may face on the first anniversary of the new Health and Safety sentencing guidelines.
Since the new guidelines were introduced a year ago, there have been an unprecedented number of sanctions and fines for breaching the Health and Safety at Work Act etc (1974). It has now become commonplace to see fines of more than £1m for non-fatal cases for example, which previously would have been dealt with in a magistrates’ court.
Andrew Litchfield, partner, Gowling WLG, discusses the impact of the new guidelines: “A major factor in the size of these sentences is the turnover of the defendant organisation. What we’re seeing currently is a disproportionate effect on medium sized organisations, rather than those with a turnover of excess of £50m for example.
“The purpose of the sentencing is to remind offending business owners and shareholders that they simply cannot break health and safety legislation – it’s got to hurt, that’s the point of the sentence. It is our belief that it is only a matter of time before we see fines in excess of £10m.
“If you can show that you have discharged that duty and that you are working towards a recognised industry standard that helps. Failing to respond to complaints or near misses would put a business in the higher culpability bracket."
