Leading transport safety 28 September • Durham

Es Shepherd Head of Member Advice FTA

Changes to sentencing guidelines New guidelines came into force 1 February 2016 Step by step approach for organisations and individuals for health and safety offences and also corporate manslaughter To “bring home the message” to stakeholders and directors Directing courts to assess culpability, assessment of seriousness or likelihood harm, determine starting point for financial penalty from turnover

Guidelines for both organisations and individuals Penalty ranges In practice Guidelines for both organisations and individuals Penalty ranges Organisation Individual Corporate manslaughter Maximum When tried on indictment: unlimited fine When tried summarily: unlimited fine When tried on indictment: unlimited fine and/or 2 years’ custody When tried summarily: unlimited fine and/or 6 months’ custody Triable only on indictment: unlimited fine Offence range £50 fine - £10 million fine Conditional discharge – 2 years’ custody £180,000 - £20 million fine

Step by step procedure Step 1. Determining offence category* Step 2. Starting point and category range Step 3. Review financial element of sentence Step 4. Consider other factors Step 5. Reduction for guilty pleas Step 6. Compensation and ancillary orders Step 7. Totality principle Step 8. Reasons Step 9. Consideration for time spent on bail* * - slightly different for Corporate Manslaughter

Step 1 – Determining offence/seriousness of offence Organisation Individual Corporate Manslaughter Deliberate breach or flagrant disregard of the law How foreseeable was serious injury? Falling short of standards: Failing to have measures for industry standards Ignoring concerns raised by employees Failure to address risks to health and safety Risk of offending but risk taken nevertheless How far short of standards did the offender fall? Systems in place not always adhered to Offence committed through act of not exercising reasonable care How common is this kind of breach in the organisation? Minor failings Offence committed with little fault Was there more than one death etc.?

Step 2 – Starting point and category range Company size based on turnover H&S offence - organisation Corporate Manslaughter Starting point Category range Large - £50 million and over £10,000 to £4M £3,000 to £10M £5M to £7.5M £3M to £20M Medium - between £10 and £50 million £3,000 to £1.6M £1,000 to £4M £2M to £3M £1.2M to £7.5M Small – between £2 and £10 million £700 to £450,000 £100 to £1.6M £350,000 to £540,000 £350,000 to £2.8M Micro – not more then £2 million £200 to £250,000 £50 to £450,000 £300,000 to £450,000 £180,000 to £800,.000

Percentage of respondents holding delegated authority to act on behalf of a director for operator licensing administration

Used delegated authority to complete an application

Key actions for transport leaders Do Check Plan Act

Plan Leadership sets the direction for effective management by way of a policy that is an integral part of the organisation’s culture FTA’s Operator licensing policy and procedure documentation guidance Lists the key operator licence responsibilities Provides an action plan on establishing a policy Sample policy

Director level engagement Our company has a policy, defined by the board, which demonstrates how the responsibilities of operator licensing are discharged in the company A director on my company's board would know what the undertakings on the operator licence are if asked A director on my company's board would know that there are undertakings on the operator licence but would have to refer to them to understand the content A director on my company's board would be aware that they have legal responsibilities under operator licensing No director on my company's board would be aware what operator licensing is

Our company has a policy, defined by the board, which demonstrates how the responsibilities of operator licensing are discharged in the company A director on my company's board would know what the undertakings on the operator licence are if asked A director on my company's board would know that there are undertakings on the operator licence but would have to refer to them to understand the content A director on my company's board would be aware that they have legal responsibilities under operator licensing No director on my company's board would be aware what operator licensing is

Do Effective management systems are in place that are adequately resourced by competent people. Appropriate assessments are carried out and suitable procedures are in place. TM has continuous and effective management Chain of command clearly identified From board director(s) to all relevant job functions

Check Performance of the system must be monitored and reported, including preventative information as well as incident data. Key Performance Indicators (KPI) reported at least quarterly OCRS Maintenance systems Drivers hours and working time Notifiable incidents

Does your company report KPIs to the board?

Which KPIs are reported to the board?

Act The policy and performance of the system should be reviewed regularly and action taken to address weaknesses. Leadership action should be swift, visible and monitored for effectiveness. Ensure TC is informed of changes to: legal entity of the organisation financial standing of the organisation fhe named executive directors establishment of the organisation any notifiable incidents the type and number of operator licences required

Has the board acted on KPIs?

Conclusions Check Do Plan Act

Conclusions Actions for the Board Map the tasks against job functions Write a policy Ensure clear instructions are given and processes are documented. Actions for Transport Manager Submit Leading Transport Safety to Board for endorsement