New sentencing guidelines outline fines of up to 拢20m for convicted firms that have a turnover above 拢50m

Large construction firms convicted of corporate manslaughter will face a fine of 拢20m or more under new guidelines published today.

The guidelines, published by the Sentencing Council, suggest that judges should fine firms relative to their turnover.

Under the guidelines, firms with a turnover of over 拢50m will be fined up to 拢20m for corporate manslaughter, and up to 拢10m for fatal health and safety offences.

However, the guidelines suggest that for convicted firms with a turnover that 鈥渧ery greatly exceeds鈥� 拢50m, 鈥渋t may be necessary to move outside the suggested range to achieve a proportionate sentence.鈥�

Medium sized firms with a turnover between 拢10-50m will face a fine up to 拢7.5m if convicted of corporate manslaughter, while small firm with a turnover between 拢2-10m will be fined up to 拢2.8m.

Reacting to the sentencing guidelines, Jonathan Grimes, a partner at law firm Kingsley Napley LLP, said: 鈥淭he new guidelines send a clear message to company directors that they need to take their health and safety obligations seriously or risk facing significant penalties.

He added: 鈥淭he amounts we are talking about represent a massive hike in the fine levels we have seen to date.鈥�

Neil O鈥橫ay, a partner at global law firm Norton Rose Fulbright, said: 鈥淭he guidelines are particularly tough on large businesses. In assessing the level of fines, the courts will focus on company turnover rather than profit.

鈥淢edium to large companies will feel the effect most acutely with fines routinely being counted in the millions of pounds and in the tens of millions for the most egregious failings of health and safety legislation.鈥�

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