The judge, Mr Justice Field, said the company could pay the fineat £38,500 a year for 10 years.
Cotswold Geotechnical was found guilty of corporate manslaughter earlier this week over its gross negligence that led to the death of 27-year-old employee Alex Wright in September 2008. Mr Wright was investigating soil conditions in a deep unsupported trench on a development plot in Stroud when it collapsed and killed him.
Cotswold Geotechnical was described as having financial difficulties and has only four employees. Five years ago it had eight.
"It may well be that the fine in the terms of its payment will put this company into liquidation. If that is the case it's unfortunate but unavoidable. But it's a consequence of the serious breach," he said.
The judge said that the size of the fine reflected the gravity of the offence, he said, and would act as a deterrent on other companies to observe their health and safety obligations.
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