Since 2016 Crown and Magistrates Courts in England and Wales have been bound tougher guidelines for sentencing offenders who have been convicted of health and safety offences.23
Courts in England and Wales are now required to follow these
comprehensive sentencing guidelines. Generally these new guidelines have
been welcomed and in particular, that in future three factors are key
in determining the level of fines for health and safety offences
namely:
Turnover of the offending organisation
- Culpability of the offender
- Degree of harm caused
The guidelines are well supported among safety professionals and ensure greater consistency in the sentencing practice of the courts and a level of fines that fitt the crime.
The changes which came into effect in 2016 relate to the level of fines imposed and in certain cases the use of imprisonment as a sanction. In the past, courts have failed on occasion, to properly take into account the seriousness of the offence in weighing up the appropriate penalties.
As Lord Thomas, the Lord Chief Justice made clear in recent appeal court decision, the purpose of fines is to reduce criminal offences, reform and rehabilitate the offender and protect the public. The objective must be to reduce the number of fatal and major injuries and occupational ill health – not as a revenue generation scheme where extra money gained through increased fines goes into Treasury coffers. This is not what it is about.
Organisations are now required to submit detailed financial information including turnover figures, pre-tax profit, director remuneration, pension provision, assets and debt exposure for the past three years. Failure to produce required financial information or the production of insufficient or unreliable financial information attracts an adverse reaction. The court forms its own conclusions from the circumstances and information available, including that the offender is able to pay any fine.
Those organisations facing substantial fines for such offences may also have to report such matters in their annual accounts with inevitable reputational damage as a consequence.
Of personal significance for directors and senior managers is the prospect of an unlimited fine or a custodial sentence if they are found guilty of the consent, connivance or neglect in the commission of the offence by the organisation. For the most serious breaches the thresholds for custodial sentences for individuals suggest a far greater likelihood of imprisonment.
For any further advice or information please contact the team here at SFB Consulting. Our offices are based in Bishop’s Stortford and London, but we offer our services and consultancy UK wide.
T:01279 874 676
E:info@sfb-consulting.com