Prior to 2008, the average fine + reparation was just $18,500. From 2008 onwards, the average has been approximately $44,200. The clear step change appears to be the result of a combination of a change in the maximum penalties available under the law and a successful appeal by the Department of Labour.
Another notable feature from the chart is that average fines steadily increased from approximately $5,600 in 2006 to approximately $28,900 in 2010.
The true cost to a business of a health and safety conviction is much higher than these figures. A single prosecution may include multiple charges: the figures shown in the chart are per convicted charge. In addition there are: the legal fees involved in a defence - which could start at around $20,000; the lost productivity from the accident; and the lost productivity from the staff and management involved in the defence.
Could your business withstand a $60,000 cash flow "hit"? Make sure you have your Health & Safety systems in place and integrated into your standard operations. Please contact us to discuss how we can help.
