If the worst case happens and a prosecution is brought against the organisation then it is vital to prove that the companies risk management of its safety processes falls into the lowest culpability factor category i.e. meet recognised industry standards are pro-actively managed.
The new guidelines means:
- Fines are now basically uncapped
- Fines are based on Company turnover NOT profit
- Risk of custodial sentences have increased dramatically under the new legislation.
It is therefore important for organisations to be able to demonstrate that they have robust safety management systems in place which are comprehensive and pro-actively managed.
See below of examples of the culpability factor impact on the potential fine range:
These fine ranges are based on using the lowest level of Harm factor (Level 4)
| Company | Fine Starting Point | ||
|---|---|---|---|
| Medium (turnover £10-50m) | High Culpability Level 2 £100k | Medium Culpability Level 3 £50k | Lowest Culpability Level 4 £3k |
| Large (turnover £50m plus) | High Culpability Level 2 £240k | Medium Culpability Level 3 £130k | Lowest Culpability Level 4 £10k |
Definition of Culpability Factors:
| Very High | (Level 1) | Deliberate breach or flagrant disregard for the law |
|---|---|---|
| High | (Level 2) | Serious and/or systemic failure within the organisation to address risks to health and safety |
| Medium | (Level 3) | Systems were in place but these were not sufficiently adhered to or implemented |
| Low | (Level 4) | Failings were minor and occurred as an isolated incident. |
