The HSE’s new Fee for Intervention (FFI) cost recovery scheme is now in force.

As of Monday 1^st October 2012, those in material breach of health and safety legislation are liable for recovery of HSE’s related costs, including inspection, investigation and taking enforcement action, under the Health and Safety (Fees) Regulations 2012 (SI 2012/1652).

Geoffrey Podger, Chief Executive of HSE, said: “It is right that those who fail to meet their legal obligations should pay HSE’s costs rather than the public purse having to do so.

“FFI provides a further incentive for businesses to manage health and safety effectively and to operate within the law. It should also help level the playing field between those who comply and those who don’t.

“Costs will be recovered where there has been a material breach of health and safety law. A material breach is where a business or organisation has broken the law and the inspector judges it serious enough to notify them in writing.”

Businesses that comply with their legal obligations will not be affected, however those found to be making a material breach will pay the FFI hourly rate for 2012/13 of £124.

HSE will review how FFI is working after the first twelve months of operation, and within three years of the regime coming into effect.

Guidance and information are available on the HSE website.

Lion Steel Limited, of Hyde, Greater Manchester, has been fined £480,000 and ordered to pay £84,000 prosecution costs after pleading guilty to a charge of corporate manslaughter.

The case relates to the death of Steven Berry, an employee of Lion Steel who died following an accident at the company’s premises in which he fell through a roof panel on to the floor below.

This is only the third conviction for the statutory offence of corporate manslaughter and although still below the £500,000 set out in the sentencing guidelines the penalty is higher than those imposed in the two previous cases. In the first prosecution Cotswold Geotechnical Holdings Limited was fined £385,000 and Northern Irish pig-farming company, JMW Farms, was fined £187,500 earlier this year.

Lion Steel was originally charged with corporate manslaughter and offences under the Health and Safety at Work etc Act 1974 (HSWA), and three directors were also charged, in their personal capacity, with gross negligence manslaughter and breach of HSWA through their connivance or neglect.

The charges against the directors were dropped and the company initially pleaded not guilty to corporate manslaughter, however the company changed its plea to guilty part way through the trial.

The court is allowing the defendant to pay the fine in four instalments, between September 2012 and 2015, highlighting how such large penalties may be justified against relatively small organisations without forcing them to cease trading.

Representatives of the police and HSE stated the case should be a clear message to employers to take action to prevent workers being put at risk.

The reporting requirements in relation to accidents at work changed on 6^th April 2012. It therefore seems a good time to review when workplace accidents must be reported to the Health and Safety Executive (‘HSE’).

Under RIDDOR (The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995) there is a legal duty on employers, the self employed or someone in control of work premises to report and record some work related accidents and injuries.

Failure to report ‘reportable’ accidents is a criminal offence and the responsible person can be sentenced in the Magistrates’ Court with a fine up to £20,000, or in the Crown Court with an unlimited fine. Individuals deemed responsible for non-reporting can also face a period of imprisonment for up to two years.

It is therefore vitally important that if an accident occurs which is ‘reportable’ that it is reported and recorded in accordance with RIDDOR’s requirements. However, businesses should be certain that an accident is ‘reportable’ before reporting; making an unnecessary report may bring unwanted scrutiny and investigation by the HSE.

So what work related accidents are reportable?

• Deaths;
• Major injuries, including but not limited to fractures (other than to fingers, toes and thumbs), dislocation of the shoulder, hip, knee or spine and loss of sight;
• Over-seven-day injuries (previously over-three-day injuries) which are non major injuries which cause an employee or a self-employed person working on your premises to be away from work or unable to do their full range of normal duties for more than seven days;
• Disease, including but not limited to certain musculoskeletal disorders (for example repetitive strain) and hand arm vibration syndrome (vibration white finger); and
• Dangerous occurrences (near misses) including but not limited to collapse, or failure of load bearing parts of lifts and lifting equipment and electrical short circuits.

(Please note that this list is not exhaustive but highlights the most common reportable accidents and other injuries and accidents (including some gas incidents) need to be reported as well)

All the above accidents must be recorded within the responsible person’s internal records. Deaths, major injuries and dangerous occurrences must be reported without delay. A written report must be submitted within 10 days of the incident, apart from over-seven-day injuries which require a written report to be submitted within 15 days.

So far the changes have received a mixed response. Whilst businesses will be pleased for the reduced regulatory burden to report injuries, other groups are concerned that the changes will be detrimental to the health and safety of employees as many accidents that were previously caught by RIDDOR will now go unreported and the regulatory bodies will not be aware of such accidents.

Either way, businesses must be aware that their reporting duties have changed to avoid making unnecessary reports to the HSE.

Found this information useful? Sign up for a free trial of the Legislation Update Service here to access regular, more detailed articles.