Bribery Act 2010

In less than eight weeks time the Bribery Act 2010 comes into force with a clear message that there is no place in business for bungs, bribes or backhanders.

The aim of the new legislation is to modernise and consolidate the law on bribery, which in some cases dates back as far as 1889. Once in force, far-reaching implications for companies doing business in the UK are expected.

 

With a more comprehensive framework, the Bribery Act will help combat this crime in the private and public sector and is welcomed by most commercial operators who up until this point have, by their own admission, been unsure of the rules.

 

Two general offences will be created by the Act: offering, promising or giving of an advantage, and requesting, agreeing to receive or accepting an advantage. In other words, offering or taking a bribe.

It will also be an offence to bribe a foreign public official and there will be a corporate office of failing to prevent bribery by anyone working on behalf of an organisation.

 

Although this puts greater pressure on corporate organisations than before, employers can protect themselves by proving that they had “adequate procedures in place” to prevent staff or “an associated person” from committing bribery.

 

For example, if one of your salesmen offers to share his commission with the manager of a local business in return for them placing an order and you, as the owner of the business, have put robust controls in place to prevent bribery, you could be open to prosecution with a maximum penalty of ten years imprisonment and an unlimited fine.

 

For those businesses that consider themselves immune from any risk of bribery, the government has issued guidance stating that they do not have to go to the expense of putting unnecessary special procedures in place.

 

While the vast majority of businesses have nothing to fear, the legislation makes no allowance for the size of an organisation so small businesses beware.

Even the world of corporate hospitality is affected by the new legislation. Everything from a free pen to an all expenses paid day on the golf course has the aim of attracting new business and strengthening existing relationships. So when is one a legitimate gift or entertainment and another palm greasing?

 

Many in the commercial world have welcomed greater clarity especially amid fears that even the most frugal of hospitality could have been interpreted as a bribe.

 

The rule to remember here is that corporate hospitality will amount to bribery if it can be shown that the person offering it intended to influence the recipient into acting improperly. 

 

Relative, reasonable and non-excessive are the measures, all of which should clearly be set out in your Corporate Hospitality Policy and communicated to your workforce, agents and sub-contractors. 

Any business unsure about how the new legislation might affect them should seek professional legal advice.

 

* Simon Robinson is a Partner at BHP Law in Stockton. He can be contacted on 01642 672770.