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13 December 2007
Issue: 7300 / Categories: Legal News , Health & safety , Professional negligence
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Corporate manslaughter fines could force firms out

News

Plans to fine first-time offenders up to 10% of their annual turnover for corporate manslaughter offences could force companies to leave the UK and move their headquarters elsewhere, if enacted, lawyers say.
The Sentencing Advisory Panel has drawn up proposals—currently out for consultation—which would see fines of 2.5%–10% of average annual turnover imposed for an offence of corporate manslaughter. When sentencing for an offence under the Health and Safety at Work etc Act 1974 involving death, meanwhile, the fine range would be 1%–7.5% of average annual turnover.

Gerard Forlin, barrister at 2-3 Gray’s Inn Square, says: “This is of fundamental importance to organisations operating in the UK and some may reflect on continuing to have their major headquarters here.”
He says the proposed fines—which would be in line for those imposed for competition offences—cannot rely on a deterrent effect since “some people working in very dangerous environments feel they cannot do much more”.
Forlin believes this could be the final straw which, on top of high taxes, terrorist threats, high workforce costs and more, forces companies to move their UK bases.

However, Jeff Zindani, managing director of Forum Law, argues that the fine range is unlikely to have much of a deterrent effect on companies but “demonstrates yet again the weakness of this legislation”.

MOVERS & SHAKERS

NLJ Career Profile: Maryam Syed KC, Church Court Chambers

NLJ Career Profile: Maryam Syed KC, Church Court Chambers

From childhood dreams of the Bar to some of the country's most challenging cases, Maryam Syed KC explains why she has never stopped standing up for others

DAC Beachcroft—Richard Breavington, Rachel Ford & Daniel Guilfoyle

DAC Beachcroft—Richard Breavington, Rachel Ford & Daniel Guilfoyle

DAC Beachcroft significantly expands Cyber team, hiring three Cyber partners

Browne Jacobson—Professor Clive Kay

Browne Jacobson—Professor Clive Kay

Browne Jacobson appoints senior healthcare leader Professor Clive Kay as strategic adviser

NEWS
As family justice moves further away from the courtroom, collaborative law is emerging as an increasingly important route to resolving separation disputes
A busy period for employment law is producing important lessons for employers, employees and tribunals alike
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

How forcefully can a litigant criticise a public authority before robust advocacy crosses the line into unreasonable conduct? 
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