An administrative fine is an unconditional obligation to pay a sum of money, imposed by an administrative body itself for a breach. Unlike a remedial sanction its purpose is punishment, which is why criminal-law safeguards apply.
Legal basis
Title 5.4 of the General Administrative Law Act contains the general rules. Article 5:40 gives the definition, Article 5:41 excludes a fine to the extent that the breach cannot be attributed to the offender, and Article 5:43 prohibits double punishment for the same breach. Article 5:44 governs the relationship with criminal law: where a prosecution has been brought for the act, no fine may be imposed. Article 5:46(2) requires the fine to be tailored to the seriousness of the breach, the degree of culpability and the circumstances. Article 5:10a confers the right to silence and requires a caution as soon as someone is questioned as an offender. Because this is a criminal charge within the meaning of Article 6 ECHR, the presumption of innocence and the right to assistance apply as well.
How it works in practice
For heavier fines the inspectorate first draws up a report, after which you may submit a view. That is a crucial moment: findings of fact not contested there are effectively fixed for the rest of the procedure. Fining policy rules often set standard amounts, but the body must always assess whether the amount is proportionate in the individual case. Ability to pay can justify a reduction, provided it is evidenced.
Where it goes wrong
Businesses often cooperate fully during an inspection without realising the investigation is already directed at them; statements made without a caution can be excluded from the evidence. A second error is failing to raise ability to pay or special circumstances. A third is overlooking the reasonable time requirement: proceedings that drag on can justify a reduction of the fine.
Related terms
The fine contrasts with the remedial order subject to a penalty and connects to the criminal law right to silence.
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