With greater clarity on how best to deal with corporate manslaughter and other HSE offences in the agricultural sector, businesses need to be prepared for the fact that, as of the 1st February, any misdemeanours could leave them with a bill of up to £10m in fines, or even a two year prison sentence for any company director, officer or employee if prosecuted in a personal capacity.
The Health and Safety Executive estimates that almost one person a week has been killed in the agricultural sector in the past 10 years. Enough of these deaths have related to health and safety breaches to warrant a reassessment of health and safety penalties, and now the Sentencing Council have brought changes into the way breaches are dealt with.
From the 1st February, individuals found to be in breach of Health and Safety face unlimited fines and a two-year custodial sentence. Previously, lower courts were only able to issue fines of up to £20,000 and custodial sentences were rare, as judges and magistrates have had little guidance on complex cases which only arise every so often.
Gary Gallen, CEO at law firm rradar, identified the impact these changes would have and how professional services, such as those that are offered by rradar, can support their clients:
“These new guidelines will understandably instil fear due to a severe escalation in penalties, highlighting the need for professionals to help navigate businesses through the detailed and complex guidelines that have to be adhered to when running a business. It is important for professionals to provide simpler, practical, round the clock guidelines and advice.”
Companies with a turnover of up to £2m could now be looking at fines of up to £450,000, while fines of bigger businesses with revenue over £50m could reach £10m.
How can McClarrons & Rural Protect help protect farmers?
Specialist management liability policy Rural Protect provides insurance cover for the cost of dealing with regulators, including HSE fees for intervention costs. Farmers can also access a free 24/7 crisis line and unlimited legal advice from qualified solicitors on a range of regulatory and legal issues, thereby helping rural businesses avoid the financial repercussions of regulatory breaches.
Gary Gallen will be guest speaker at McClarrons and George F. White’s ‘Protect and Grow’ seminars being held across North Yorkshire at the end of March and beginning of April. Read about our Farming Insurance or find out more by calling 01653 697055, or emailing farm@mcclarroninsurance.com.
