The Bribery Act 2010 becomes law in July this year. Essentially it creates new offences relating to bribing another person; being bribed; bribing of foreign officials and most significantly for businesses, being a commercial organisation and failing to prevent bribery.
Commercial organisations, directors and employees can be liable for offences under the new law. The new criminal offences created by the Act carry penalties of up to 10 years’ imprisonment or unlimited fines.
While the vast majority of businesses would not think of giving or receiving bribes, the Act has two practical effects for people in business. First, it lowers the threshold as to what might be considered ‘normal hospitality’ or ‘marketing activity’. Also it creates the need for businesses to have clear policies in place in relation to countering bribery.
In practice, the type of activities that the Act seeks to prohibit may not be so far from the average business as one may think.
Take for example a salesman who, keen to meet his targets, goes beyond providing normal business hospitality to a buyer at a big client. Unknown to his employer, he gives the buyer some form of gift. In these circumstances, the employer may well be liable for the salesman’s action under the Bribery Act. However, it would be a defence for the employer to show that they had a proper anti-bribery policy in place and that the salesman had acted without their knowledge and consent.
The new Act will certainly raise the profile of issues concerning what is – and is not – appropriate for businesses to give and receive in the marketplace. The message for employers is to ensure they have a clear anti-bribery policy and can show that it has been brought to the attention of all of its officers and employees.
If the employer can safely say “Nothing to do with me, Your Honour” and show the court their policy, their position will be considerably stronger.
If you need clear and pragmatic legal advice, we’re here to help so please get in touch.
Our legal experts have been busy sharing valuable expertise in their first series of free webinars for employers, and businesses across the county who missed the live events can now…
The Coronavirus Business Interruption Loan Scheme (CBILS) has thrown a much-needed lifeline to businesses experiencing cashflow difficulties as a result of the coronavirus outbreak. 17 December 2020 Today, Rishi Sunak…
The global outbreak of coronavirus (COVID-19) and the government’s resulting emergency measures have had severe implications for many businesses. Read on for answers to some frequently-asked questions on corporate &…
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL cookies.
This website uses cookies to improve your experience while you navigate through our website. Out of these cookies, the cookies that are categorised as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyse and understand how you use our website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies but it may affect your browsing experience on our website. You can find our cookie policy here.
Necessary cookies are absolutely essential for our website to function and enable core functionality such as security and accessibility. These cookies do not store any personal information. You can block these cookies by changing your browser settings, but this may affect how the website functions.
We use performance cookies such as Google Analytics to help us count the number of visitors and to see how visitors move around our website when they are using it. This helps us to improve the way our website works, for example, by ensuring that users are finding what they are looking for easily. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our cookie policy.