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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

DAC Beachcroft—Paul Brehony

DAC Beachcroft—Paul Brehony

Commercial disputes practice expands with partner hire in London

Ward Hadaway—Maria Coster

Ward Hadaway—Maria Coster

Partner appointed to lead family and matrimonial department in Leeds

Slater Heelis—Helen Marsh

Slater Heelis—Helen Marsh

Commercial property team expands in Manchester with partner appointment

NEWS
SRM Recruitment has been announced as the headline sponsor of the Law Society RFC Festival of Sport 2026, which will take place on 20 September at Richmond Athletic Association. The specialist legal search firm joins the event as organisers prepare to welcome more than 110 teams across five sports, including rugby sevens, netball and five-a-side football
The civil justice landscape could be heading for a shake-up, with reform of the Solicitors Act 1974 gathering pace
Global mobility is transforming family law, creating new challenges around jurisdiction, assets and child arrangements
A series of procedural developments could have significant practical consequences for litigators. Writing in NLJ this week, columnist Stephen Gold highlights important updates ranging from digital court reforms to family procedure and admissions of liability
As family structures evolve, the law may face difficult questions about inheritance rights for those in polyamorous relationships
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