Fines for Organisations found guilty of the new offence of corporate manslaughter will not be linked to profit or turnover but should "seldom" be below half a million pounds, say the guidelines.
Draft guidelines on sentencing for the offence were published on October 27 by the Sentencing Guidelines Council (SGC), which also proposes sanctions in the form of a publicity order and/or a remedial order, where appropriate.
SGC chairman Lord Judge explained "The Council is now proposing a level below which a fine "would not normally be expected to fall" – £500,000 – saying also fines "may be measured in millions of pounds".
Courts will also be able to order the offending organisation to advertise the conviction. A further unlimited fine could be imposed for failure to comply with the Order. The content of the Publicity Order will be proposed to the court by the enforcing authority.
A Remedial Order, setting out steps that must be taken to address the failings that led to the death/s, will also be available to the courts. This procedure is designed to ensure that shortcomings in the safety policy and procedures are dealt with.
Lord Justice Anthony Hughes, Council member and Vice-President of the Court of Appeal (Criminal Division), said: "Fines cannot and do not attempt to value a human life – compensation will be payable separately in these cases. The fine is designed to punish, and these are serious offences, so the fines imposed should be punitive and significant to reflect that."
IOSH (Institute of Occupational Safety and Health) "broadly welcomed" the draft guidelines, saying it viewed the main aims of the guidelines as "raising health and safety standards, ensuring remedial action, and as a deterrent to show societal disapproval of serious corporate failures".
IOSH also acknowledged the potential impact of substantial fines, "as they may cause probing questions to be asked by major shareholders or funding bodies, and may delay or prevent the organisation from progressing certain of its other objectives, thereby helping to reinforce the business case for health and safety".