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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: John McElroy, London Solicitors Litigation Association

NLJ Career Profile: John McElroy, London Solicitors Litigation Association

From first-generation student to trailblazing president of the London Solicitors Litigation Association, John McElroy of Fieldfisher reflects on resilience, identity and the power of bringing your whole self to the law

Clarke Willmott—Elaine Field

Clarke Willmott—Elaine Field

Planning and environment team expands with partner hire in Manchester

Birketts—Barbara Hamilton-Bruce

Birketts—Barbara Hamilton-Bruce

Firm appoints chief operating officer to strengthen leadership team

NEWS
A wave of scandals has reignited debate over misconduct in public office, criticised as unclear and inconsistently applied. Writing in NLJ this week, Alice Lepeuple of WilmerHale says the offence’s ‘vagueness, overbreadth & inconsistent deployment’ have undermined confidence
FIFA’s 2026 Men's World Cup is already mired in controversy, with complaints over ‘excessive prices’ and opaque ticketing. Writing in NLJ this week, Professor Dr Ian Blackshaw of Valloni Attorneys warns that governing bodies may face scrutiny under EU competition law, with allegations of a ‘dominant—if not monopolistic—position’ in ticket sales
Ten years after Brexit, UK and EU trade mark regimes are drifting apart in practice if not principle. Writing in NLJ this week, Roger Lush and Lara Elder of Carpmaels & Ransford highlight tighter UK scrutiny after SkyKick, where overly broad filings may signal ‘bad faith’
A landmark Supreme Court ruling has underscored the sweeping reach of UK sanctions. In NLJ this week, Brónagh Adams and Harriet Campbell of Penningtons Manches Cooper say the regime is a ‘blunt instrument’ requiring only a factual, not causal, link to restricted goods
Fraud claims are surging, with England and Wales increasingly the forum of choice for global disputes. Writing in NLJ this week, Jon Felce of Cooke, Young & Keidan reports claims have risen sharply, with fraud now a major share of litigation and costing billions worldwide
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