Organisations
Breaches of sections 2 and 3 of the HSWA (which set out the employer’s duty to employees and non-employees in respect of health and safety) or health and safety regulation can incur fines of up to £10 million under the new Guideline.
The Court will examine the harm caused and culpability factors to determine the appropriate fine. For example, where an organisation commits an offence that exhibits a “deliberate breach of or flagrant disregard for the law”, it will be assessed as having very high culpability. Once culpability has been examined, the Court will assess the risk of harm caused, with more serious offences attracting higher penalties.
For the most serious offence committed by a company with a turnover of £50 million or greater, the starting point for a fine is £4 million within a category range is £2.6 million to £10 million. The Court can then discount or increase the penalty depending on the harm caused and the culpability factor.
The Court should also consider whether ancillary orders are appropriate, e.g. orders for compensation or remediation under section 42(1) of the HSWA.
Individuals
The Guideline also sets out the steps to be followed when sentencing individuals. These are broadly similar to those for organisations, although there are some differences. The starting point for the most serious offence committed by an individual is 18 months’ imprisonment and the category range is 1 – 2 years’ custody. Where an offence has been committed by a director, the Court may impose additionally a disqualification order under section 2 of the Company Directors Disqualification Act 1986. When imposing a prison sentence the Court must also give consideration to any time spent on bail awaiting trial. Penal sentences are used sparingly and only in extreme cases.