Law firm slams corporate manslaughter panalities
April 4, 2008
The law firm, Eversheds, has slammed the recommendations of the Sentencing Advisory Panel (SAP) with regard to suggested penalties under the Corporate Manslaughter and Corporate Homicide Act 2007.
Eversheds has labelled the penalties "wholly inappropriate" and at risk of putting companies out of business.
In November 2007, the SAP published a consultation document recommending that companies found guilty of corporate manslaughter under the Corporate Manslaughter and Corporate Homicide Act 2008, which comes into force on 6 April 2008, should be fined up to 10% of annual turnover.
However, Eversheds says that the SAP proposals have several major flaws and go against recent Court of Appeal recommendations, which could lead to increased confusion for businesses.
Commenting on the plans, Kevin Elliott, Regulatory Partner at Eversheds, said, "Firstly, the issue of sentencing for offences under the [Health and Safety at Work, etc Act 1974] has repeatedly been looked at by the Court of Appeal, which has clearly stated that no tariff can be applied in health and safety cases and each case should be considered individually. Secondly, the suggestion that sentencing can act as a deterrent is completely inappropriate. The mere possibility that a serious incident could occur is enough of a deterrent for most businesses, who would not intentionally go out to commit the offence."
The law firm says that not only have recent fines increased "considerably", but that in high turnover/low margin businesses such as those in the retail, food and construction sectors, "turnover is not the appropriate place to start".
A source at the firm said, "It should not be the aim of sentencing to put companies out of business — these proposals could well do that."
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