What Is Non-Compliance?
Non-compliance in health and safety can have serious consequences. For example, if a company does not comply with the rules for dealing with asbestos, they could be fined £20,000 or more per day that they are non-compliant. Another consequence of being non-compliant is that workers may not receive training on how to use dangerous substances safely. This article will explore what non-compliance is, why it’s important for companies to comply with these laws, as well as some of the consequences that come along with being non-compliant.
What is Non-Compliance?
Non-compliance with health and safety laws is when a company is not following the rules, guidelines and regulations that have been set out and established by the Health and Safety at Work etc. Act 1974.
It is very important for individuals, companies, and governments alike to ensure they are compliant with all applicable laws as well as company policies. Failure to do so could result in fines, penalties, prosecution, and even imprisonment.
What Are The Consequences of Non-Compliance?
If you are not compliant, it can lead to accidents on your property which could lead to injuries or even death. Non-compliance can be intentional or unintentional, so it’s important to understand what this means in regards to health and safety laws. One example of being non-compliant is workers not receiving adequate training on how to use dangerous substances safely.
Penalties for non-compliance with health and safety legislation:
1. Financial Penalties
An HSE Inspector can issue a notice of prohibition or improvement to a company that has breached health and safety legislation. HSE fines of up to £20,000 are common, and in cases of serious negligence, they can be unlimited. If you’ve endangered lives, then you could incur an unlimited fine as well as imprisonment.
2. Reputation Damage
Being non-compliant with health and safety regulations could really damage your business’s reputation. As a result, you could even be disqualified from working in the industry.
3. Putting Lives at Risk
The most severe outcome of being non-compliant with health and safety regulations is the injury or death of an employee or worker. In one well-known case, Sir Robert McAlpine was fined £200,000 after a worker died due to non-compliance with health and safety regulations. In other examples, fines have even gone up to £800,000. The highest fine within the construction sector was £2.6 million.
4. Financial Repercussions
The running costs of health and safety negligence can be severe and can seriously add up. The cost of sick pay and relevant cover can be significant, not to mention increased insurance premiums. In the event that you are ordered to pay out compensation for workplace injuries or ill health, as unlikely as this may be, your bottom line could take a real hit. All in all, these costs can add up to your profits being dramatically impacted.