Research Notice 1/2016 22.1.2016
Alvesalo-Kuusi, Anne & Lähteenmäki, Liisa:
Occupational safety crimes and corporate criminal liability in Finland
Corporations seldom convicted of safety crimes
Individuals are punished for occupational safety omissions far more often than corporations, according
to the Occupational safety crimes and corporate criminal liability in Finland research project, which is
jointly conducted by the Finnish Institute of Occupational Health and the University of Turku.
Corporations may receive a corporate fine, which was enacted in the Finnish penal code in 1995 and
extended to apply to occupational safety crimes in 2003. While the number of corporate fine convictions
has been on a small but steady rise, the amount of the fines have stayed relatively low considering the
seriousness of the crimes and their consequences. During 2010–2014, the average fine was 10 700 euros,
but the amount most often fined was only 5000 euros.
The main reason for enacting corporate criminal liability in 1995 was firstly, to emphasize the responsibility
and liability of the entire corporation in cases in which individual liability would prove excessive. The
legislator also wanted to emphasize that reprehensible, punishable actions were often the consequence of
several persons’ decisions, omissions, or actions in a corporation. The amendment process was furthered
by the growing significance of both the working class and civil society; the multifaceted, evolving systems of
paid work and corporate action; interest in protecting the environment; and the incompetence of the
criminal law in dealing with crimes that take place within these areas of life. (Alvesalo & Lähteenmäki
2016.)
During the period 2010–2014, altogether 154 occupational safety crime cases resulted in corporate fines.
The number of corporations fined was 161. For the most part, the convicted corporations represented
private companies (94%); other corporations, such as cities, municipalities or state-owned enterprises
constituted only 6 per cent of the convicted corporations. However, during the same time period, 805
individuals were convicted of occupational safety crimes, of which 733 were fined. Corporate fines were
only dealt out in every fourth occupational safety crime case. The annual number of corporate fine
convictions has increased between 2006 and 2014 from 7 to nearly 40. It can be thus argued that despite
the legislator’s initial idea, it is still is the individual who, for the most part, bears the burden of liability in
occupational safety crime cases.
Corporate punishment is lenient
During 2010–2014, the average corporate fine was 10 700 euros and the most often paid fine was 5000
euros. The lowest fine was 500 euros, even though the minimum fine defined by law is 850 euros. The
single highest fine, in turn, was 180 000 euros, although the penal scale extends to 850 000 euros.
Corporate fines are lenient considering the seriousness of these crimes, as described below.
Omissions often long term
The corporations were most often convicted of violating the 8th Article of the Health and Safety at Work
legislation (employer’s general obligation to take care of employees’ health and safety) or the Articles 10
and 14 (employer’s obligation to determine and assess work hazards, and employer’s obligation to provide
employees with instructions and guidance). Omissions often included the defectiveness of machinery or
devices, a lack of supervision over work methods, and a lack of orientation at the work site. Furthermore, at
least in every fifth convicted corporation, an industrial accident or a near-miss-situation had already
occurred before the conviction. The omissions in the convicted corporations were often of a long-term
nature: the average duration of the crime, in cases where it had been reported (N=90), was as long as 525
days. It is thus important to understand that occupational safety crimes are not sporadic, sudden incidents:
they are typically the end result of an offence that has been ongoing for some time.
Serious injuries among victims of occupational safety crimes
In the cases under scrutiny, a total of 140 persons were injured and 12 were killed. The majority of the
victims were men (85 %). The most common injuries were fractures (36 %) or amputation (21 %). The
injuries were usually the result of contact with an unprotected device (32 %) or of falling (25 %). In fatal
cases, the most common reason for the death of an employee was the employer’s failure to protect from
falling (58 %). Most (73 %) of the victims were employees of the convicted enterprise, 19 per cent were
employees of a subcontractor.
Top management rarely convicted
In the cases under scrutiny, in addition to corporations, 288 individuals were also convicted. All but one
received a fine; this individual was sentenced to probation. Twenty-six per cent of the convicted individuals
represented top managers, 38 per cent were from middle management, and 33 per cent were supervisors.
All in all, the average fine imposed on a person was 1170 euros. On analysis of the individuals’ statuses, the
mean fine was 29 day-fines and 1725 euros for top managers; 26 day-fines and 1123 euros for the middle
management; and for supervisors, 24 day-fines and 757 euros.
Convicted corporations are often prosperous
Over half (54 %) of the convicted private enterprises have a net revenue of over 10 million euros. Only 14
per cent of the convicted enterprises had revenues of under 1 million euros. Fines were also imposed on
loss-making enterprises (32 %). Nevertheless, only 20 enterprises (13 %) had no free assets, and only 2
enterprises (1 %) had gone bankrupt after the sentence. On average, the solvency ratio of the private
enterprises was 31. Contrary to the fears at the time of the enactment, the majority of convicted
enterprises are not financially weak or small but rather prosperous and stable, and thus financially capable
of taking care of their safety responsibilities. Corporate fines were most often dealt to enterprises
operating in the field of industry (58 %), followed by construction enterprises (27 %).
Occupational safety crimes and corporate criminal liability in Finland is a research project conducted jointly
by the Finnish Institute of Occupational Health and the University of Turku. The research scrutinizes
corporate criminal liability in occupational safety crimes. The data consists of corporate fine convictions
during 2010‒2014 (N=154). The research in funded by the Finnish Work Environment Fund, and will
continue until December 2016.
Figure 1: Fines for occupational safety crimes during 2010‒2014, individuals and corporations. (District
Courts, Courts of Appeal and Supreme Court).
Figure 2: Occupational safety crimes in the criminal justice system in 2014.
More information:
Project website
Professor Anne Alvesalo-Kuusi, Leader of the research project, Senior Researcher, Finnish Institute of
Occupational Health and University of Turku tel. +358 40 5414783, e-mail: [email protected]
Liisa Lähteenmäki, Special Researcher, Finnish Occupational Health Institute, e-mail:
[email protected]
Alvesalo-Kuusi, A. & Lähteenmäki, L.:
Journal of Scandinavian Studies in Criminology and Crime Prevention 1.1.2016 On line:
Legislating for corporate criminal liability in Finland: 22-year long debate revisited