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New sentencing guidelines could see fines soar for very large organisations
Written on 23 June 2025
On 1 June 2025, the Sentencing Council introduced important amendments to its guidelines for health and safety, corporate manslaughter, and food safety offences.
These changes are particularly relevant for very large organisations (VLOs), as the updated guidance makes clear that courts should now consider significantly higher fines for companies whose turnover greatly exceeds the threshold used for “large” organisations.
What are sentencing guidelines?
Sentencing guidelines are set by the Sentencing Council for England and Wales to help judges and magistrates determine appropriate penalties when individuals or organisations are convicted of an offence.
They offer a consistent, structured framework by considering key factors such as the seriousness of the offence, the level of blame (culpability), any harm caused, and the financial circumstances of the offender.
When companies are prosecuted for health and safety offences, the guidelines aim to ensure that fines are fair, consistent, and proportionate to both the offence and the organisation’s size.
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What's changed?
When sentencing guidelines for health and safety offences were introduced in 2016, they included fine bands based on company size, with “large” organisations defined as those with turnover above £50 million.
However, no clear method was given for sentencing organisations that far exceed this threshold. As a result, courts were left to exercise broad discretion, leading to inconsistent outcomes and uncertainty for VLOs facing prosecution.
The updated guidelines, which came into effect on 1 June 2025, aim to close this gap. While the guidelines still don’t set a specific turnover figure for VLOs, they now clarify that where a company’s turnover “very greatly exceeds” £50 million, courts may need to move beyond the standard sentencing range for large organisations to achieve a proportionate outcome.
This gives judges a clearer mandate to impose significantly higher fines where the company’s financial resources and the seriousness of the offence justify it. The fine should:
- Constitute an appropriate punishment;
- Reflect the seriousness of the offence;
- Deter future breaches; and
- Reinforce to management and shareholders the importance of compliance with health and safety laws.
Why the change?
The updated guidance is designed to make sentencing more consistent and proportionate for VLOs – organisations whose financial scale makes standard penalty bands inadequate.
It reflects a growing recognition that, for some companies, fines must be more substantial to act as a true deterrent and drive better compliance. The revisions provide courts with a clearer foundation for setting penalties that are not only fair but impactful – ensuring that large businesses feel the financial consequences of serious health and safety failings.
What does this mean for employers?
For VLOs, the implications are clear: fines could increase significantly following a conviction, especially where failings are serious or systemic. There is now a greater likelihood that penalties will be scaled to match the organisation’s turnover and financial strength, with courts encouraged to “bring home the message” through fines that are not easily absorbed as a cost of doing business.
More broadly, the changes signal a tougher stance on corporate accountability and an expectation that organisations, regardless of size, take a prevention-first approach to managing risk.
Final thoughts
Nick Wilson, Director of Health & Safety Services at WorkNest, says: “The changes to sentencing guidelines underline the courts’ growing willingness to impose heavier penalties where businesses fall short – especially when they have the means to do more.
“While the latest changes target very large organisations, the guidelines apply to all employers and include starting point fines for micro, small, and medium-sized businesses. These penalties can be significant and should serve as a wake-up call for smaller organisations that may not fully appreciate the financial impact of a prosecution. I would encourage employers to familiarise themselves with the fine bands to understand what’s at stake based on their size.
“Ultimately, the best protection is prevention. A strong safety system and a proactive approach to managing risk can greatly reduce the likelihood of serious incidents – and the legal consequences that follow.”
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