The Health and Safety (Offences) Act 2008 comes into force on 16th January 2009. It forms the second part of a ‘double whammy’ for companies that are operating on the wrong side of the law, the first being the Corporate Manslaughter and Corporate Homicide Act 2007, which has been in effect since April of last year.
The Health and Safety Act 2008 raises the maximum financial penalty for breaches of health and safety legislation, and makes imprisonment a sentencing option for most offences. Certain offences will carry a maximum prison sentence of 12 months for cases heard in the Magistrates’ Court, or two years in the Crown Court.
Just because sentencing powers have increased, it doesn’t necessarily mean that Courts will increase fines and impose custodial sentences. However, some cases may now be sentenced by the Magistrates, who might have previously sent cases to the Crown Court where they thought their powers were inadequate. This is good news for defendants, who will see reduced legal costs and speedier resolution.
In theory, the Act shouldn’t increase the number of prosecutions for health and safety offences, as companies’ duties in this area haven’t changed. However, for fatal accidents, investigations under the Corporate Manslaughter Act place the management and organisation of a company into the spotlight, which could very well lead to “satellite litigation” of directors and senior managers.
We are still awaiting guidance from the Sentencing Advisory Panel on financial penalties for corporate manslaughter. A starting point of 5 per cent of turnover has been suggested, or 2.5 per cent for other health and safety offences.
This has a real sting in the tail. The Offences Act has opened the door for more health and safety offences to be sent to the Crown Court, which has the power to impose unlimited fines. If the panel’s suggestion is confirmed, then the door is well and truly beaten down and 2009 could very well bring higher fines for health and safety charges.
We will be running a series of workshops on health and safety issues and mock trials on corporate manslaughter from our Birmingham, Leeds and Manchester offices. If you would be interested in attending click here find out more and reserve your place online...
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