The Bribery Act 2010
Are you aware of new legislative changes coming through next year? The Bribery Act 2010 which was given Royal Assent in April this year comes into force in the UK in April 2011. The CIPD has just released an update.
What does the Bribery Act mean to you as an employer and are you prepared?
For the purposes of this Act, bribery is defined as ‘the giving or taking of a reward in return for acting dishonestly and / or in breach of the law’.
The Bribery Act 2010, has four possible offences that may be committed which you, as a responsible person need to be aware of in order to reduce risk within your business operation. So what are the offences? Let’s consider them now.
1. Bribing another person
The offering, promising or giving of a reward to induce a person to perform a relevant function or activity improperly.
2. Being bribed
The acceptance of, agreement to accept or request of a reward in return for performing a relevant function or activity improperly.
A ‘relevant function or activity’ includes any activity of a public nature or any activity connected to a business. This therefore may have far reaching consequences for organisations.
‘Acting improperly’ will be any breach of what a reasonable person in the UK would expect in relation to the performing of the function or activity. However, note that the offences apply even if the function or activity is not taking place in the UK.
3. Bribing a foreign public official
This is a specific offence of trying to influence a foreign public official with the intention of obtaining or retaining business in a situation where the public official was not permitted or required by law to be influenced.
4. Failure to prevent bribery occurring
This - the 'corporate offence' - occurs when an organisation fails to stop people who are operating on its behalf from being involved in bribery. One would assume then, that ignorance is no excuse.
It is the ‘corporate offence’ that organisations need to pay particular attention to and therefore may have far reaching consequences for organisations who ignore the new legislation.
This offence could occur as a result of the activities of a range of people working on behalf of your organisation – an employee, consultant or agent, for example – if those individuals were involved in accepting or receiving a bribe which resulted in the organisation gaining or retaining business. This is a change to the current approach to the law where only bribery involving senior managers is likely to result in legal action.
Note:- that the offence of bribery relevant to this Act could be committed in the UK or overseas. Specifically offences may be prosecuted if:-
• committed by a British national or corporate or individual who is ordinarily resident in the UK regardless of where the offence was committed, and/or
• any act or omission which forms part of the act is committed in the UK.
In addition, the corporate criminal offence will apply to commercial organisations with a business presence in the UK regardless of whether or not the bribe is paid in the UK or the procedures are controlled from the UK.
If the ‘corporate offence’ is committed, then both the organisation and its directors can receive sanctions including unlimited fines. The possible sanction for an individual involved in bribery is raised from 7 years in jail to 10 years.
What does the Bribery Act mean to you as an employer and are you prepared?
For the purposes of this Act, bribery is defined as ‘the giving or taking of a reward in return for acting dishonestly and / or in breach of the law’.
The Bribery Act 2010, has four possible offences that may be committed which you, as a responsible person need to be aware of in order to reduce risk within your business operation. So what are the offences? Let’s consider them now.
1. Bribing another person
The offering, promising or giving of a reward to induce a person to perform a relevant function or activity improperly.
2. Being bribed
The acceptance of, agreement to accept or request of a reward in return for performing a relevant function or activity improperly.
A ‘relevant function or activity’ includes any activity of a public nature or any activity connected to a business. This therefore may have far reaching consequences for organisations.
‘Acting improperly’ will be any breach of what a reasonable person in the UK would expect in relation to the performing of the function or activity. However, note that the offences apply even if the function or activity is not taking place in the UK.
3. Bribing a foreign public official
This is a specific offence of trying to influence a foreign public official with the intention of obtaining or retaining business in a situation where the public official was not permitted or required by law to be influenced.
4. Failure to prevent bribery occurring
This - the 'corporate offence' - occurs when an organisation fails to stop people who are operating on its behalf from being involved in bribery. One would assume then, that ignorance is no excuse.
It is the ‘corporate offence’ that organisations need to pay particular attention to and therefore may have far reaching consequences for organisations who ignore the new legislation.
This offence could occur as a result of the activities of a range of people working on behalf of your organisation – an employee, consultant or agent, for example – if those individuals were involved in accepting or receiving a bribe which resulted in the organisation gaining or retaining business. This is a change to the current approach to the law where only bribery involving senior managers is likely to result in legal action.
Note:- that the offence of bribery relevant to this Act could be committed in the UK or overseas. Specifically offences may be prosecuted if:-
• committed by a British national or corporate or individual who is ordinarily resident in the UK regardless of where the offence was committed, and/or
• any act or omission which forms part of the act is committed in the UK.
In addition, the corporate criminal offence will apply to commercial organisations with a business presence in the UK regardless of whether or not the bribe is paid in the UK or the procedures are controlled from the UK.
If the ‘corporate offence’ is committed, then both the organisation and its directors can receive sanctions including unlimited fines. The possible sanction for an individual involved in bribery is raised from 7 years in jail to 10 years.
posted by Liz @ Fairways at
00:11
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home