Thursday, May 11, 2017

Massive fines and prison sentences for food business operators

Tougher punishments came into force last year February, which carry substantial fines for businesses and custodial sentences for individuals who are convicted of breaking food safety regulations.
What is happening-The most striking change in health and safety enforcement since 1974,is set to revolutionise and dramatically increase punishment for food safety and hygiene offences. These new sentencing guidelines could possibly send you to prison and end your business due to a massive fine now based on your turnover.


Why is it happening- Up to now, there has been a lack of consistency in sentencing food safety offenders. In addition, there was concern that fines, failed to reflect the seriousness of the harm caused and/or the culpability of the offender. The new guidelines provide a much more detailed calculation mechanism to determine the amount of fines and prison sentences.
They will mean significantly higher fines for companies found guilty of food safety and food hygiene offences.


The new guidelines will use the turnover of the offender to identify the starting point of the fine. The offences can range from low to very high, low indicating that the failings were minor and occurred as an isolated incident, to very high which indicates a deliberate breach of /or flagrant disregard for food safety law.


Food safety offences may include issues such as :
  • Poor kitchen hygiene practices
  • Selling unsafe food
  • Not applying HACCP to your business
  • Causing an outbreak of e.coli food poisoning
  • Incorrect labelling and advertising of food
  • Inadequate paper trail, traceability and records
  • Not following food allergy laws in your business.
The aggravating factor will increase the seriousness of the offence and increase the level of fine and length of custodial sentence.


The fines and custodial sentences for organisations and individuals for breaching the food safety and food hygiene regulations- The court is required  to focus on the organisation's annual turnover to reach a starting point for a fine, offenders will be expected to provide comprehensive accounts for the last 3 years. Where such information is not provided, the court may infer that the offender can pay any fine imposed.
Depending on the severity of the offence and the size of turnover of the company,fines can range from £200 to £3 million. For small companies whose turnover is not more that £2 million,the fine ranges from £200 to £120,000. The fine bands start at 25% of weekly income,rising to a maximum of 700%.
Aggravating factors such as poor food safety, poor hygiene can increase the level of the fine. The profitability of an operation will be relevant, if it has a large profit margin,the fine may be adjusted upward.
The fine will be sufficiently substantial to have a real economic impact which will bring home to both management and shareholders the need to operate within food safety regulation.
Custodial sentences and community orders: depending on the severity of the offence and harm caused, the sentences for individuals can range from a conditional discharge to 18 months custody. Community orders which are also part of the punishment,can range from 40 to 300 hours of unpaid work.

‘New guidelines will greatly increase fines across the board…..  More worryingly,many more directors,managers and junior employees will be handed custodial sentences due to a significantly lower threshold for imprisonment.’- Dr Simon Joyston-Bechal is a director at Turnstone Law. He is widely regarded as one of the UK’s leading health and safety lawyers.
What you need to do: It is absolutely necessary that business owners,supervisors and managers ensure their staff have competent food safety training and should install  adequate safety management systems and procedures.


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