Avoid the pitfalls of health and safety breaches

Since 1 April 2008 the Health and Safety Executive (HSE) has been the single regulatory body for promoting health and safety at work.

The main piece of legislation that sets out a Company’s duties is the Health and Safety at Work Act 1974, under which HSC Inspectors can serve improvement notices requiring the employer to remedy a fault within 21 days or issue a prohibition notice that requires an activity to cease immediately.

The Health and Safety (Offences) Act 2008, which came into force on 16 January 2009, increased the maximum penalties under the 1974 Act. As well as financial penalties, employers found to be flouting the law can be sentenced to a term in prison. Businesses now face tough financial penalties with six figure sums becoming commonplace. In 2005 Transco Plc was fined £15M; Balfour Beaty was fined £10M (reduced to £7.5M on appeal) and Network Rail £3.5M following the Hatfield train crash. The Buncefield oil depot explosion resulted in 5 companies being fined a total of £5.3m, although this included environmental breaches as well as health and safety.

Fines imposed by the Magistrates Court are subject to an upper limit, but cases heard in the Crown Court are open to unlimited fines on businesses or individuals.

In April 2009 a company was charged with corporate manslaughter when a pit collapsed on a geologist who was collecting soil samples – a high profile case that made the national press and TV. One of the directors was also personally charged with the common law offence of gross negligence manslaughter, which carries a maximum sentence of life imprisonment, and an offence under Section 33 of the Health & Safety at Work Act 1974.

The director in question suffered ill health and the personal criminal charges against him were permanently stayed, but the trial completed on 15 February 2011 when the jury found the company guilty of corporate manslaughter. Because of its relatively small size, the fine was limited to £385,000, repayable over a 10 year period. The court acknowledged that a larger fine could take the company into insolvency but was keen set a level at which the fine would be a deterrent to other companies and help ensure that health and safety guidance was followed.

Most employers allow themselves an occasional groan about onerous health and safety law, but this case demonstrates that at its heart is the objective of protecting and preserving life and, for the family involved here, non compliance became a personal tragedy of huge proportions.

For advice on health and safety law or employment law in general, contact Reggie Lloyd at Birkett Long LLP on 01206 217300 or email reggie.lloyd@birkettlong.co.uk