The Bribery Act 2011 came into force on July 1 and introduces changes which could have significant implications for companies. The Act applies to all UK-based businesses and organisations regardless of size as well as individuals.
Employers, directors and employees can be liable for severe penalties which include fines, jail terms and prevention from tendering for future public contracts.
Under the Act, the main offences are bribing another; being bribed, bribing a foreign public official and failure to prevent bribery. A ‘bribe’ is defined as to “offer, promise or give a financial advantage” to another person.
Bribery includes gifts, hospitality, entertainment, political/charitable donations, sponsorship and giving publicity.
Employers should review existing policies as a matter of urgency, particularly in relation to corporate hospitality and employees accepting gifts. Ideally, employers should introduce an anti-bribery and corruption policy as this would provide a complete defence to the corporate offence.
Employees should be properly informed of the policy and what it means in practice. Training in anti-bribery should form part of an employee’s induction and employers should promote a culture of zero tolerance to bribery from the top to bottom of the organisation.
Bonus or commission schemes should not encourage employees to break the rules, especially where performance related pay makes up a large part of the remuneration package.
Lesley Walford
Associate Solicitor, Employment Department
