Penalties — notices and fines

The Health and Safety at Work etc Act 1974 (HSWA) provides for three main systems of enforcement. These are:

• improvement notices;

• prohibition notices; and

• fines or imprisonment.

When an improvement notice is served, the employer must take action to put things right within a specified time. If the employer fails to comply, a prohibition notice may be issued, stopping the operation that is causing the hazard.

Inspectors have the power to issue an immediate prohibition notice, stopping an operation if there is a risk of immediate danger. A deferred prohibition notice may also be issued. Appeals against these notices must be made to an employment tribunal and can lead to a stay (delay) of execution of an improvement notice. There can be no delay in implementing a prohibition notice if the inspector believes that the risk of serious personal injury is imminent.

Fines are governed by the Health and Safety Offences Act 2008. There is a maximum fine of £20,000 for nearly all summary offences that are dealt with in a Magistrates Court, with unlimited fines in higher Courts. Judges can impose fines which consume or exceed company profits, even in cases where an employer has not been found to have deliberately cut corners to make a profit (R v FJ Chalcroft Construction Ltd [2008] EWCA Crim 770).

The latest statistics (2012-13) show that the HSE prosecuted 597 cases, with a conviction secured in 568 cases (conviction rate of 95%). It also prosecuted 973 offences of health and safety, resulting in 849 convictions, a conviction rate of 87%. Duty holders found guilty of health and safety offences received fines totalling £12.9 million, an average penalty of £15,153 per offence.

Local authorities prosecuted 109 cases, with a conviction secured in 104 cases as well as prosecuting 244 offences, resulting in 220 convictions, a conviction rate of 90%. Duty holders found guilty of health and safety offences received fines totalling £2.1 million, an average penalty of £9,528 per offence (HSE, Enforcement section, www.hse.gov.uk/statistics/prosecutions.htm).

Unions have long called for higher penalties for health and safety offences. The Department for Work and Pensions (DWP) published a report in January 2014 showing how the courts are being tougher on employers who breach health and safety laws following changes under the Health and Safety Offences Act 2008.

The report highlights how more cases are being dealt with by the lower courts (86%) with higher fines (increase of 60%) and more imprisonment sentences, as offenders can now be sent to jail for the majority of health and safety offences.