Pictured above: Andy Jamieson

From the 1st July 2011, the UK's Bribery Act 2010 comes into force. Designed to clamp down on business corruption, which according to Andy Jamieson, a Nottingham-based employment lawyer, could prove to be yet another administrative burden for employers.

Head of employment law at East Midlands law firm Nelsons, Andy talks about the new Act: "Not since the Prevention of Corruption Acts of 1889 to 1916 have we had legislation focused on targeting corporate bribery. The aim of the Act is to facilitate free and fair competition which, according to the Secretary of State for Justice, Kenneth Clarke, is diminished by each bribe offered or accepted. 

"The Act creates individual criminal offences of offering or receiving bribes in order to get or keep business or gain a business advantage. Bribery of foreign officials is also prohibited, which includes those elected or appointed who hold a legislative, administrative or judicial position of any kind of a country or territory outside the UK. Any company that carries on a business in the UK can also now incur liability for the corrupt actions of its employees or subcontractors, even if the company's management knew nothing about the bribery."

According to Andy, the Act is intended to have teeth.  He says: "The maximum penalty for individuals is 10 years imprisonment and a fine of up to £5,000.  The company's exposure is an unlimited fine together of course with damaging publicity. Although Kenneth Clarke has stated that no-one wants to stop firms getting to know their clients by taking them to events like Wimbledon or the Grand Prix, we will have to see where the line is drawn between bona fide hospitality and the offering of a bribe."

Companies are advised that they need to be aware that they will be able to mount a defence to a charge of failure to prevent a bribe being paid on an organisation's behalf if they can show that they had adequate procedures in place to prevent bribery. Whether procedures are adequate, Andy says, will depend on the bribery risk an organisation faces. He continues: "Guidance indicates that 6 principles will be recognised in assessing risk, including proportionality, top level commitment, risk assessment, due diligence, communication, and monitoring and review.

"What is clear is that all business, regardless of their size should prohibit bribery in any form whether direct or indirect and by or for the organisation and commit to systems to outlaw bribery. A sensible policy is a starting point in respect of which businesses should take specialist legal advice."

For more information about Nelsons, please visit their website here: www.nelsonslaw.co.uk