19th January 2012 11:18
Ian Pettifer, head of employment law at Tayntons, regularly answers reader questions in South West Business Insider’s Staff Matters column. In his article for the magazine’s January 2012 edition, Ian tackles the subject of bribery.
Reader question: ‘As a company we like to send out gifts to key clients at certain times in the year. Most of the gifts are reasonably modest, but we do treat our biggest clients to items of value such as Harrods hampers or champagne. Our intention is honest - to show appreciation - but could we be in danger of falling foul of the Bribery Act?'
Ian answers:
“The Bribery Act 2010 introduced new criminal offences:
· Offering, promising or giving a bribe
· Requesting, agreeing to receive or accepting a bribe
· Bribing a foreign public official.
· Failing to prevent bribery.
Companies should have procedures to prevent bribery. For most UK businesses, a couple of simple steps will be enough; pass a memorandum at board level, to show top-level commitment, and introduce a simple policy for all staff to follow.
The Ministry of Justice has published guidance on its website and this makes clear that ‘Bona fide hospitality and promotional, or other business expenditure which seeks to improve the image of a commercial organisation, better to present products and services, or establish cordial relations, is recognised as an established and important part of doing business and it is not the intention of the Act to criminalise such behaviour.’
You are not committing an offence unless the gift of a hamper was intended to bring about bad faith, loss of impartiality or to abuse a position of trust.
The authorities would consider how lavish the gift is, before considering a prosecution. The top price for a Harrods hamper is £5,000, and most hampers do not cost more than £1,000. In my opinion, a hamper, of this sort of value, given as a ‘thank you’ for past legitimate business, and given openly without concealment is not a bribe. It is a present.”
For further information and advice, contact Ian Pettifer on 01452 509080 or email ian.pettifer@tayntons.co.uk
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