The total value of fines imposed by the HSE in 2016 was more than £61 million—a 148 per cent rise from 2015 due to the higher health and safety fine amounts, according to law firm, BLM. During that same time period, the average cost of a fine rose from  £69,500 to £211,000, making prioritising health and safety in your organisation more important than ever.

What’s Been Happening?

In February 2016, the new guidelines from the Sentencing Council came into force. These amendments dramatically increased fines for corporate manslaughter, food safety and hygiene offences, and health and safety offences.

Within the first year, it has become apparent that the new guidelines have been effective, as there were 19 fines of at least £1 million, compared to only three in 2015 and none in 2014, according to HSE data. What’s more, the value of the 20 highest fines in 2016 totalled £38.5 million, which was just more than all the 660 total successful prosecutions in 2015-16 (£38.3 million).

However, even after more than a year, some organisations are still unfamiliar with the new guidelines and fines. To ensure that your organisation is adequately prepared for the sentencing revisions, review the following comprehensive overview and guidance.

What Are the New Fines?

Depending on an organisation’s income, it could be placed in one of the following four categories:

  1. Large organisations: Turnover of £50 million or more
  2. Medium organisations: Turnover between £10 million and £50 million
  3. Small organisations: Turnover between £2 million and £10 million
  4. Micro organisations: Turnover of £2 million or less

By using the above criteria, the courts will classify organisations in order to mete out proportionate fines for these offences:

  • Health and safety offences: Based on an organisation’s offence, turnover and whether the fine is proportionate to its financial means, fines range from £50 to £10 million.
  • Corporate manslaughter: Based on the seriousness of an organisation’s offence, its turnover and whether the fine is proportionate to its financial means, fines range from £180,000 to £20 million.
  • Food and safety hygiene offences: Based on an organisation’s offence, turnover and whether the fine is proportionate to its financial means, fines range from £100 to £3 million.

Best Practices to Prioritise Health and Safety

To help your organisation prioritise health and safety and avoid these costly new fines, follow these five best practices:

  1. Conduct a thorough risk management and health and safety review of your premises and policies. In addition, you may want to review your organisation’s risk assessment with a health and safety professional to ensure that there are no gaps.
  2. Provide a comprehensive safe work practices training for all of your employees. This training should be conducted at least annually or after a health and safety incident.
  3. Have your employees participate in regular technical and operational training to ensure that they can safely use all the equipment and perform all required tasks.  In addition, you should also conduct a risk assessment and training for each new piece of equipment or task.
  4. Have a health and safety consultant visit your organisation to conduct a thorough risk assessment at least annually.
  5. Encourage your health and safety manager to earn health and safety as well as risk management accreditations.

More Information

If your organisation would like more information, you can visit the Sentencing Council’s definitive guideline document, which can be found here. In addition, you can contact Andrew Phillips Insurance Brokers Ltd. today for help prioritising health and safety and to verify that your insurance is comprehensive and robust.

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