The value of fines collected from the construction sector for breaches of health and safety law has doubled in a year to almost £13m, according to research from global law firm Clyde & Co.
Prosecution data obtained directly from the Health and Safety Executive (HSE) shows that the total value of fines in the construction sector increased to £13m in the first year of the new sentencing guideline (year end 31 January 2017), up from £7m in the previous 12 months – an 83% rise.
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Rhian Greaves: H&S is top priority
Clyde & Co explains that new sentencing guidance introduced on 1 February 2016 toughened penalties for health and safety and corporate manslaughter offences.
Under the new approach, the scale of fines varies according to the turnover of the company but can exceed £20m for the very worst cases involving corporate manslaughter, and potentially more for the largest companies.
Rhian Greaves, head of compliance & strategic support in Clyde & Co’s safety, security, health & environment team, commented: “Health & safety is now a top priority for the boardroom. Our research confirms what we have been seeing in practice – the new sentencing guidelines are biting hard.”
“The floodgates are beginning to open and the new guideline is clearly having an impact. We have seen more fines exceeding £1m this year than in the previous 15 years combined. Companies should be concerned that fines are now routinely hitting the £1m mark, even in apparently less serious cases meaning that all breaches of health and safety law are now a serious threat to a company’s bottom line.”
Fines against the construction sector represented 21% of the overall total collected by the HSE this year. The highest fine imposed on the sector was £2.6m.
Clyde & Co explains that the HSE has enforcement oversight of “higher risk sectors”, including construction and manufacturing. While local authorities are responsible for the enforcement of “lower risk sectors”, such as retail, leisure, hospitality, care, catering, warehousing and office space.
Greaves added: “The percentage increase in fines in the construction sector is significant but not unexpected. The cases that have passed through the courts have reinforced the dramatic effect the new sentencing regime is having on defendant organisations. The HSE has a 94% conviction rate when they prosecute so the consequences of receiving a summons are considerable.”
“The first year of the guideline has seen fines for construction organisations rise by more than 80%.
As an industry, construction has consistently been identified as a sector with a “statistically significantly higher workplace injury rate. Home to 6% of the national workforce, construction has been responsible for nearly one third of work related deaths; a disproportionate and concerning figure, albeit one that is improving based on the HSE’s most recent statistics.”
