Multi-million pound fines may be imposed for corporate manslaughter

Companies found guilty of corporate manslaughter may be fined millions of pounds in accordance with the final and definitive guidelines.

The Sentencing Guidelines Council (SGC), which sets the sentencing bands for criminal offences, says the fines imposed “may be millions and should seldom be below £500,000”. It says that fines from £100,000 upwards should be imposed for other health and safety offences that lead to death.

Courts should not be influenced by the impact on shareholders or directors when fixing fines; nor should they consider the cost of complying with any other sanctions that might be imposed. They may, however, consider the effect on the “employment of the innocent” and the provision of services to the public.

The SGC says various factors may increase the seriousness of the offence. These include the “foreseeability of serious injury, whether non-compliance was common and widespread within the organisation, and how far up the organisation responsibility for the breach went.

“Other factors that would aggravate the offence and raise the fine above the relevant minimum level include the number of deaths and serious injury caused, injury to vulnerable persons, failure to heed warnings or respond to near misses of a similar nature, cost-cutting, and deliberate failure to obtain or comply with relevant licences.”

The guidelines say that Publicity Orders are part of the penalty and should be imposed in virtually all cases. The orders compel companies to publish a statement about their conviction for corporate manslaughter and provide details of both the offence and the penalty imposed.

Council member Lord Justice Anthony Hughes said: “Fines cannot and do not attempt to value a human life – compensation will be assessed separately in these cases. These are serious offences and the fines must be punitive and substantial and have an impact on the company or organisation.”

 

March 2010

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