Sally Roff – Head of Safety, Health and Environment Group

1. Swansea Safety GroupAlec Blackburn Memorial SeminarManaging HSE’s Fee For InterventionWednesday 18 June 2014 Sally Roff – Head of Safety, Health and Environment Group

2. Agenda • FFI Background • How to deal with a Notice of Contravention • Should you appeal? If so, how? • Real Experiences of FFI – Our Survey Results • Hints and Tips

3. Background to FFI Scheme • Introduced 1 October 2012 • Applies to organisationsregulated by HSE • £124 per hour (more if HSE expert instructed) • “Material breach” – where written notice deemed necessary

4. Background to FFI Scheme Charges are resulting from inspections: • In response to RIDDOR report • Following HSE Initiative • Following unannounced visit

5. Background to FFI Scheme • HSE can charge for: • Identifying material breach • Helping businesses to put it right • Investigating the material breach • Taking enforcement action • Until: • Summons is issued; or • Inspector is satisfied that the breach has been remedied

6. Background to FFI Scheme KEY CHANGE: NO PROSECUTION REQUIRED!

7. The Figures - 12 months in • 18,433 invoices issued to 18,142 companies • Generated £8.9m • 70% of all invoices issued were to the Manufacturing and Construction industry accounted for • Average cost per FFI invoice of £485

8. The Figures – More from less? Most recent figures from December 2013/ January 2014 run: • The average cost per FFI invoice rose to £617 • Fewest number of invoices issued since May 2013 • 1 in 8 invoices issued in were for £1,000 or more

9. Make sure you’re ready • Take control – communicate with employees • Effective planning to ensure compliance – review significant hazards, effective measures in place and implemented • Up to date paperwork • Regular review of systems and procedures • Manage HSE visits

10. The Contravention Notice Should make clear: • The law that the Inspector’s opinion relates to • The organisation being issued with the Notice • The reasons for their opinion • Notification that a fee is payable

11. The Contravention Notice • How should a written notice be dealt with if received? • Should you accept the breaches?

12. The Invoice • Time spent • Activity • Inspector involved • Pay within 30 days

13. Paying an Invoice • Within 30 days • or following query, if invoice unchanged, no later than 30 days after invoice date or no later than 10 days after the dutyholder has been advised of the outcome of their query if this is later

14. Queries and Disputes

15. What is Recoverable? • Work undertaken to identify material breach and to ensure the breach is remedied • Any investigation and enforcement action up to when all necessary remedial action has been taken or up to formal charge • Where more than one organisation involved, time will be apportioned to each

16. What is Recoverable? • Writing letters and reports • Preparing and serving PN/IN • Follow up work to ensure compliance (site visits, calls ) • Taking statements • Specialist assistance – although actual cost of HSL or a third party will be recovered • Gathering info/evidence • Assessing the findings and the documentation of inspection, investigation and enforcement conclusions • Recording conclusions and inspection, investigation and enforcement information • Reviewing investigations • Research related to the material breach

17. Multi Duty-holder Cases • Recover only when responsibilities for the breaches are clear • Inspector apportions the time spent inspecting, investigating or enforcing the breach to the extent that the work done is reasonably attributable to each duty-holder • The division of overall time will be in accordance with the time spent regulating each material breach

18. Our Clients’ Experiences 50% had not heard of FFI prior to the HSE inspector’s arrival • Are your employees on the ground aware of how to deal with an inspection and the risks of accepting an FFI Notice of material breach?

19. Our Clients’ Experiences 100% concerned about a less collaborative relationship with the HSE

20. Our Clients’ Experiences 75% still do not consider the term ‘material breach’ to be clear • But maybe it is clear when you see it?

21. Our Clients’ Experiences 75% were aware of appeal process but many were concerned about the implications of doing so.

22. Our Client’s Experiences Many were concerned at the lack of advice from the HSE on resolving material breaches, despite being charged for the HSE’s time

23. DAC Beachcroft’s Top 5 Tips - Minimising risk of FFI Scheme • Prevention • Managing visits • Dealing with a written notice • Dealing with an invoice • Maintaining a good relationship with the HSE

24. The future of FFI? • DWP’s Triennial Review of HSE critical of FFI and recommended it “should be phased out” • HSE review of FFI by October 2015

26. An Effective Health & Safety Culture DAC Beachcroft/Lloydmasters Thought Leadership Project 2014 How can directors and senior managers achieve and maintain an effective safety, health and environment culture through times of change?

27. Sally Roff Partner - Safety Health and Environment Group T: +44 (0) 844 980 3430 E: sroff@dacbeachcroft.com