Payroll news

Corporate manslaughter fines set to double

20.11.2009

Employers will face fines of up to £1m if found guilty of corporate manslaughter, under new sentencing proposals. The Sentencing Guidelines Council has recommended that a fine should now only ‘rarely be below £500,000’.

In addition to the fine, companies would be forced to make a public statement with details of the fine, and the information would be made available to shareholders and customers.

The Council had originally proposed to fine companies between 3-10 % of their turnover, but due to the vastly different internal and financial structures of organisations the council changed its mind.

The first prosecution under the act is scheduled for February. Cotswold Geotechnical Holdings and its director Peter Eaton are accused of gross negligence leading to the death of a junior geologist at the firm.

The guidelines follow the introduction of the Corporate Manslaughter and Corporate Homicide Act in 2008. Final guidelines are expected to be published early 2010.