The Cost of Non-Compliance: Why Regulations Matter

Some employers see health and safety regulations as red tape – pointless rules that stifle productivity and increase costs when safety should just be a matter of common sense.

In practice, it’s actually the opposite. Yes, safety requires investment. PPE, equipment maintenance and training aren’t free (although online training is a more affordable option).

But complying with all relevant health and safety regulations ensures workers can focus on the job at hand and get more done. And the cost of implementing and sustaining safety measures always pales in comparison with the cost of non-compliance.

The financial cost of non-compliance is the most straightforward to measure.

Accidents cause disruption. Work has to be stopped for hours or even days while the incident is investigated and resolved. Equipment or facilities might also need to be repaired or replaced, which carries both a direct cost and the potential for further delays.

Accidents also cause injuries. Workers who are hurt on the job need time off to recover and can seek compensation. Their colleagues will also develop concerns for their own safety, causing a slump in productivity, an increase in staff turnover or both.

The Health and Safety Executive (HSE), which regulates health and safety in Great Britain, estimates the current annual cost of injury and ill health to the British economy is approximately £20.7 billion. This figure includes both direct financial costs (such as production delays) and human costs – the drop in quality of life injured workers and their families suffer.

Then there are fines. The HSE can issue penalties for non-compliance. Fines are often in the thousands, but there’s no upper limit if a breach is so severe it lands you in the Crown Court. And some organisations have been charged millions for failing to protect their workers, meaning the current average fine is around £145,000.

Accident costs can continue long after the incident has been resolved. Stakeholders, investors and consumers can all lose faith in your organisation due to serious or repeated non-compliance.

You’ll also struggle to attract or retain talented staff if you have a reputation for poor health and safety.

Eventually, the reputational costs, combined with the financial costs of repeat accidents, could force your organisation to cease trading.

Finally, there’s the moral cost of non-compliance. It’s the hardest to calculate but arguably the heaviest.

If you’re an employer, you’re accountable for your employees’ health and safety. If one of them is seriously injured or killed because you failed to comply with the right regulations, you’ll face more than a fine.

No one’s job should cost them their life. You have an obligation to your employees; every one of them must go home safely at the end of each workday.

Health and safety in the UK is risk-based, so compliance depends on your ability to identify and manage the hazards your workers face.

You should recognise this process as risk assessment. Risk assessments are a constant in health and safety legislation. You must always complete a general assessment of your workplace and document it if you employ more than five people.

If your assessment identifies more specific risks, such as those posed by manual handling or hazardous substances, then you’ll need to complete the relevant additional assessments.

Since workplace safety always comes back to your risk assessments, we’ve outlined what you can do to ensure yours are effective.

A good risk assessment needs input from your workers at the sharp end.

Ask them about their work, the risks they face and the strategies they use to manage them. Consulting with workers helps ensure that your risk assessment is thorough and the control measures you implement are practical.

Risk assessments are only worthwhile if they make people safer. You should’ve already discussed hazards and control measures with your team, but the process shouldn’t stop here.

You must share your eventual findings with all your workers (or their representatives) and present them in a way they can easily access and understand. Translate your risk assessment into one-page safety sheets that workers can regularly check.

And don’t forget training. Workers may not fully grasp why certain controls are necessary or how to implement them, so be prepared to offer additional training on complex health and safety issues.

Risk assessments are not a one-off event. You don’t tick boxes and file your assessment away until an HSE inspector asks to see it.

Risks evolve, and control measures aren’t always successful, so your assessment needs to be regularly reviewed and updated.

Again, involve your team and look at how work is actually being done. Are control measures effective and practical? Is every risk accounted for?

Some people maintain that an annual review is sufficient but consider this the bare minimum. Be prepared to revisit your risk assessment if:

• Work conditions change
• Someone is injured
• Accidents or near misses happen
• Workers raise a concern

• Non-compliance with health and safety regulations can result in unlimited fines, damaged business reputation and disrupted operations.
• Poor health and safety practices lead to financial costs, reduced productivity, staff turnover and possible business closure.
• Employers must conduct regular risk assessments, engage with workers and keep health and safety measures updated to ensure compliance.

Compliance with health and safety regulations is a competitive advantage. Ensuring your workplace is safe, healthy and accident-free keeps costs low and productivity high. But to realise these benefits, workers need to understand and meet the relevant regulations.

Our online Health and Safety Courses are practical, detailed and designed to fit your business needs. They cover everything from risk assessments to manual handling, giving your team the knowledge and skills to work safely and in line with regulations.