Corporate manslaughter guidelines could lead to increased fines
Jan 1, 2010
The Sentencing Guidelines Council (SGC) has confirmed it is aiming to publish a draft guideline on the amount of fines, as a percentage of turnover, that should be handed down in convictions for corporate manslaughter and other workplace fatality cases.
The appropriate level of a fine is currently determined by the annual profit a company makes, not its turnover. The recommendations, if implemented, are likely to lead to a substantial increase in fines for convicted companies. Particularly in the current economic climate, there is a possibility that a change to calculating fines from turnover rather than profit could in some cases lead to closure of companies who do not have healthy balance sheets.
Although not specifying exactly when the guideline will be announced, the Sentencing Guidelines Council and Sentencing Advisory Panel’s (SAP) fifth joint Annual Report, released in June, says that the calculation of fines for organisations of different sizes and structures that fulfil different purposes is a “fundamental issue”.
The SAP has recommended fines of up to 10 per cent of turnover in corporate manslaughter cases and 7.5 per cent for charges involving a fatality under the HSWA 1974.
The SGC has undertaken extensive research into public opinion on the principles of sentencing. It has consulted directly with a wide variety of bodies on the approach to sentencing for corporate manslaughter in the development of its guideline. The first Corporate Manslaughter case is currently going through the courts, with the trial expected to begin in February 2010, the result of which will be likely to decide on the amount of fines imposed.
