The New "Offence"

A new offence of "failing to prevent bribery" comes into force on 1 July 2011 and it will have an impact on employment practices. The sanctions for organisations found guilty of this offence include an unlimited fine.

What is the offence and what is the defence?

An offence is committed if an employee, contractor, or other person "associated" with a company or partnership:

  • accepts or offers a bribe to another person
  • with the intention of obtaining, or retaining, an advantage or business for the organisation.

The defence is that the organisation in question had "adequate procedures" in place to try and prevent bribery taking place. The Government has produced detailed guidance on what procedures will be expected, but these guidelines are not prescriptive, and much depends on the nature of the individual organisations and the activities they are involved in (and consequently their exposure to bribery).

Click here for the guidance.

What are the next steps for HR departments?

Many organisations will have drafted "anti-bribery" policies as central to their anti-bribery efforts. From 1 July 2011, from an HR perspective, it is likely you will be involved in ensuring that these policies work in practice, including:

  • enforcing the anti-bribery policies and procedures;
  • training new staff in anti-bribery procedures; and
  • monitoring and reviewing the anti-bribery policies and procedures to ensure that they are still effective.

HR departments should therefore ensure that they are familiar with, and fully understand, the anti-bribery policies and procedures that their organisations have in place. You will also need to ensure that other policies and employment documentation are consistent with, and refer to, your anti-bribery polices where relevant.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.