After a delay in its implementation, the new Bribery Act comes into force today. The Act deals principally with the following areas:
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Individuals who commit bribery;
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Organisations who fail to prevent bribery by their staff or by their agents;
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Hospitality that may be construed as bribery;
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Facilitation payments.
What amounts to bribery?
Bribery is giving someone a financial or other advantage to encourage that person to perform their functions/activities improperly or rewarding them for already having done so. An organisation could be liable under the Act if an employee or agent pays a bribe to get business, keep business, or gain a business advantage.
How to prevent bribery
Your organisation will not commit the offence of failing to prevent bribery if it has 'adequate procedures' in place. The guidance issued by the Ministry of Justice identifies and expands on six principles to aid implementation of such procedures;
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Risk assessment;
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Proportionality;
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Due diligence;
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Top level commitment;
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Communication;
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Monitoring and review.
Hospitality
There have been concerns about the provision of hospitality to clients and contacts following the implementation of the Bribery Act. The Act still allows organisations to engage in corporate hospitality as long as it is 'bona fide, reasonable and proportionate'. In considering whether or not such hospitality amounts to a bribe, the level of hospitality lavished upon, and the level of influence on relevant decisions of the person receiving it, is key.
Take action now
If you are unsure of how the new Act affects your business and its activities, please contact a member of the Employment Team at Wake Smith. You may wish to consider the drafting and implementation of a policy on bribery and corruption in your staff handbook. This will help to show that you have adequate procedures in place to help to prevent bribery in your workplace.
The employment team can be contacted on 0114 266 6660 or via email:
Mark Serby - [email protected]
Holly Dobson - [email protected]
