The Bribery Act 2011 how to prepare yourself as a business

Justice Secretary Ken Clarke, on the announcement that the coalition’s Bribery Act would come into force this July 1st (just 19 months after Jack Straw’s Bribery Bill was presented to Parliament), acknowledged that the new legislation imposed some “quite tough rules” on several new offences. Those new offences are: offering or receiving a bribe, bribing a foreign official or not adequately preventing a bribe from being paid.

So how can an employer or new business steer through the legal jargon and understand the crux of the Act? Doubtless employment solicitors such as ThomasMansfield LLP and other firms working in employment law will have their hands full with inquiries concerning proper implementation of whistleblowing policies and careful re-structuring of contracts and guidebooks to include anti-bribery clauses.

The fact of the matter is that individuals found to be giving or taking bribes under the new legislation could find themselves in jail if prosecuted. However, this is not to say that business expense accounts must be closed or hosting of corporate partners is suddenly a no-go area.

The Government, foreseeing the concerns which might arise from the new Act, has published Guidance on the Justice.gov.uk portal. In the Guidance, the three main areas of conce
– Corporate Hospitality, Associated Person and Adequate Procedures Defence – are discussed and explained.

Corporate Hospitality, the area which affects most businesses, is not likely to fall under litigation. Events used to meet, greet and get to know clients or partners are not liable to prosecution.

The Associated Person section makes clear that businesses are only criminally liable for the acts of an "associated person" where that person actually represents or performs services for the company - and the bribery is committed with the intention of benefitting that company.

Finally, the Adequate Procedures Defence will largely affect big businesses, as the infrastructural implementation of bribery awareness will take more time – and no doubt there will be more likelihood of bribes taking place in a large-scale multinational network.

Small business owners are advised to amend their workplace codes of conduct both verbally and, if necessary, contractually, to include clauses stipulating no-tolerance of bribery. Business owners with any concerns are urged to get in contact with practising law firms or employment solicitors if they feel they have specific claims or issues to address.