We have recently had a discussion with one of our partner organisations who enlightened us about the New Bribery Act 2010 and how this impacts on Employers.

We invited Elaine Young of ONYC Consulting Limited, HR Consultants to write the article below for your use, thank you Elaine.

BRIBERY ACT 2010

Implications for Employers

The Bribery Act 2010 comes into force later this year (probably October) and reforms and updates existing legislation, some of which has been in place for over 100 years.

The Act provides for four bribery offences:

• Bribing – the offer, promising or giving of an advantage;
• Being bribed – requesting, agreeing to receive or accepting an advantage;
• Bribing a foreign public official;
• The ‘corporate offence’ where a commercial organisation fails to prevent persons performing services on its behalf from committing bribery;

The new corporate offence under section 7 of the Act will be of most concern to employers. A company can be found guilty of this offence if a person performing services on behalf of the company (e.g. employee, worker, consultant) bribes another person for any of the following reasons:

• To obtain or retain business for the company
• To obtain or retain an advantage in the conduct of the company’s business

This offence can be committed in the UK or overseas and if found guilty the company and its directors could be subject to criminal sanctions including fines.

There is however, a defence against this as the Act makes provision for companies to escape liability of it can be shown that adequate procedures designed to prevent bribery being committed where in place when the offence occurred. What constitutes adequate procedures is currently unclear although the Government is obliged to issue guidance. There is currently some concern as to whether such guidance will be available in time for organisations to review policies and make the necessary changes before the Act becomes law.

Companies would be well advised to starting reviewing policies and procedures now, particularly in the areas of Codes of Conduct, gifts and hospitality and whistle blowing. Employment contracts should also include a statement of penalties relating to corruption. The Act will not change the disciplinary procedures to be followed so procedures currently ­­­­­­­­­in ­­­­­­­­place will be adequate.

Finally establishing an anti-corruption culture and program led by a senior officer will also help to defend companies in the event of a charge. This should include anti-corruption training for all employees.

Elaine Young
Onyc Consulting Limited, HR Consultants
http://www.onyc.co.uk