The new Bribery Act comes into force on Friday this week - 1
July 2011. It creates new offences of bribery and, crucially, of
failing to prevent bribery. The latter is a new area of risk for
companies. Some think that it will make no real difference to the
way they work; others fear that it might create new and substantial
risks for them. For many, the reality will be somewhere between the
two. In the short term, it might be helpful to consider the
following issues.
1. Policy. There is a requirement for a policy
of some sort on bribery, reporting (including whistleblowing
procedures), business ethics and the like. This can be the
cornerstone of a defence if there are any prosecutions in future.
Existing policies may well need to be amended and made more
specific. The extent of the policy required will vary depending on
the type and size of the organisation.
2. Training. The policy needs to be
disseminated both internally and externally, and internal training
given to bring it properly to the attention of all. Training can be
fairly brief, and need not involve much more than a talk through
what the policy involves. Records of what the training involved and
who attended should be kept, and the training should be repeated
periodically, probably at least once a year.
3. Monitoring. This is required to show broad
compliance. That can involve an audit of new contracts, expenses
checks, and for example some form of independent line to which
people can report suspected breaches.
4. Appraisals. These should incorporate a
reference to the policy, and a check that the employee is aware of
it and is not believed to be in breach of it.
5. Contract of Employment and Disciplinary
Policy. This may require amendment to refer to the duties
under the Act, and that breach can merit summary dismissal.
6. Ethics Questionnaires. Many companies have
annual questionnaires designed to ensure advance notice of any
possible breaches of any of the policies, procedures or provisions
that apply - or to have certification that none are known. This can
be very helpful evidence in many respects, and the questionnaire
will probably merit amendment to include the new Act.
7. Contracts. Agreements with suppliers and
sub-contractors may require amendment to refer to the Act, and to
the company's policy.
8. Tenders. These are now likely to refer to
the Act, and have reference to procedures for compliance.
Should you require any further information, advice or assistance
on this topic, or on any other employment issue, please do not
hesitate to contact one of our team.