Bribery Act 2010
The Bribery Act 2010 comes into force on the 1st July 2011 after being delayed from its original implementation date of March 2011.
Employers need to be more aware and understand how the law on bribery has changed and the impact that it will have on their business, particularly influencing practices on Corporate Hospitality. The act sees the implementation of a unlimited fine for commercial businesses and a 7/10 year prison sentence and/or an unlimited fine for individuals.
So what is the Bribery Act?
Section 7 of the bribery act introduces a criminal offence for commercial businesses who have failed to prevent bribery by persons working for them or on behalf of them (the offense incorporates a person who is associated the commercial organisation who bribes another person with the intention of obtaining or retaining business or an advantage in the conduct of the business for the commercial organisation). An associated person may be an employee, agent or a subsidiary.
The Act also introduces a new offence of bribing a foreign public official.
The Act does however provides a defence for businesses where they can show they have adequate procedures in place to prevent any person who is associated with the organisation commiting acts of bribery. The Act does not prevent businesses from providing corporate hospitality. The government have made it clear in the Act that it does not intent to prohibit genuine or reasonable hospitality, promotional or other business expenditure. Provided that the hospitability is proportionate and is given to cement a working relationship or to demonstrate the organisations’s goods or services (connected with a legitimate business activity), it will not be prohibited.
There are practical steps that a company must do in preparation for the Act, including reviewing key employment policies such as the Disciplinary and Whistleblowing policies. Businesses will also need to ensure that they have adequate procedures in place to prevent bribery acts.
For more information and guidance on the Bribery Act download the full Act at http://www.legislation.gov.uk/ukpga/2010/23/contents
Tags: Advice, Bribery Act 2010, Employment Law, Human Resource, Joanne Jinks MCIPD