Anti-Bribery law now in force

Employment Law & HR update 03/08/2011

The Bribery Act 2010 finally came into force at the beginning of July 2011.

It makes commercial organisations criminally liable for bribery committed on their behalf, but provides a statutory defence if a business has "adequate procedures" in place to prevent persons associated with it from bribing.

What is bribery?

Bribery is defined as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for having already done so.  It will typically involve giving cash payments or other gifts to another organisation, or public body, with the aim, or effect, of obtaining some sort of business advantage.

What are the employment law and HR implications?

Organisations may commit bribery offences through the actions of their employees, so the best defence is for employers not to permit or encourage employees to engage in bribery. Bribery and corruption are specifically listed as offences of gross misconduct in all of Mentor's employee handbooks

What other systems do I need to put in place to prevent bribery?

Although the Bribery Act applies to all businesses, some businesses will be more at risk than others. 

In addition to existing employment policies, businesses and organisations that feel they are at particular risk of bribery might wish to consider putting further policies and procedures in place.  These might include policies such as those on Business Gifts and Public Interest Disclosure ("Whistleblowing") – again, most Mentor customers will already have these policies in place.

What about the "adequate procedures" defence?

Where bribery is proven to have taken place, the Bribery Act allows businesses to defend themselves by saying they have "adequate procedures" in place to prevent it.  This is not a "get out of jail free card"

Guidance issued by the Ministry of Justice (MoJ) sets out six "guiding principles" for "adequate procedures" businesses may put in place to prevent bribery.  These are:

1. Proportionate Procedures
2. Top-Level commitment
3. Risk Assessment
4. Due Diligence
5. Communication (including training)
6. Monitoring and Review

The MoJ guidance makes it clear that having a policy alone is unlikely to allow business's to avail themselves of the "adequate procedures" defence – what is required is evidence that the procedures are actually owned by senior management, and operated and put into practice within the organisation.

Where can I find out more information?

Try our pages on MentorLive.

If you would like further information, and already subscribe to NatWest Mentor, please call the Advice Service. If you would like more information on how Mentor could help your business in situations like this and many others, contact us today for information.

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