Bribery Act 2010: What Employers Need to Know About Gifts in Business

The recent controversy surrounding Lady Starmer accepting gifted clothing has reignited concerns about bribery and ethical boundaries of gifts. While discussions of corruption may evoke images of global corporations lobbying governments, the reality is that bribery laws apply to organisations of all sizes and sectors. For employers, ensuring compliance is essential—not only to protect their reputation but also to avoid severe financial and legal consequences.

What does the Bribery Act 2010 mean for employers?

The Bribery Act 2010 sets out four key offences:

• Bribing another person.
• Being bribed.
• Bribing a foreign public official.
• Failing to prevent bribery by associated persons.

The last offence is particularly significant for businesses. Organisations can be held liable if they do not have adequate measures in place to prevent bribery by their employees, or other individuals acting on their behalf. This offence carries the risk of unlimited fines, making it vital for employers to act proactively.

While the Act is clear in broad terms about what constitutes bribery, it is still easy to fall foul of the legislation. For example, it doesn’t just cover offences committed in the UK – it also applies to offences committed abroad. This can be particularly difficult to navigate when trading in countries where ‘facilitation payments’ are a cultural norm. Therefore it’s essential to employers to have oversight of their employees’ actions at all times, with steps taken to ensure there are clear, accurate and up-to-date records of all financial transactions.

Are you liable for the actions of others?

Under the Act, liability extends beyond employees to include ‘associated persons’. This term can encompass contractors, consultants, agents, and freelancers who perform services on behalf of the business. Employers must exercise due diligence when choosing external partners to reduce the risk of exposure to acts of bribery committed by third parties. This may include conducting background checks, reviewing relevant documents and seeking references where necessary.

Can employers be prosecuted if employees commit an offence?

If an employee is found guilty of bribery, it does not necessarily mean that their employer will also be charged. Businesses that can prove they have robust policies and adequate procedures in place to prevent and deter bribery and corruption can be exonerated in court or escape prosecution entirely.

The importance of policies and training in preventing bribery

Simply having an anti-bribery policy is not enough – employees need to not just be aware of the policy, but fully understand it. To protect your business, it’s essential to:

• Provide regular training. Deliver tailored training sessions using relevant examples of what bribery and corruption could look like, specific to industries and job roles.
• Ensure policies are up-to-date and accessible. Employees must know where to find them and understand their contents.
• Record attendance and outcomes of training sessions. These records could form part of a business’s defence in the event of an investigation.

Employees also need to understand the consequences of breaching anti-bribery policies, which could include dismissal, fines, criminal conviction, or even imprisonment.

Setting the right tone from the top

A strong anti-corruption culture starts with senior leadership. Leaders must model transparency and integrity in their decision-making and actions. A zero-tolerance approach to bribery, consistently applied across all levels of the business, sends a clear message about the company’s commitment to compliance.

Corporate hospitality: Striking the right balance

Corporate hospitality and gift-giving are valuable tools for building business relationships, but they must be handled with care. Although the Act is not intended to put an end to corporate hospitality altogether, it ensures that it can’t be used as a guise for illegal activity.

Under the Bribery Act, bribery is defined as something seeking to induce, or actually inducing, ‘improper performance’: in other words, incentivising or influencing someone’s decision-making or behaviour. Therefore, employers should consider:

• Intentions behind gifts. Make it clear there are no expectations or obligations attached.
• Timing and optics. Even routine gifts, such as birthday presents for clients, can raise concerns if given during sensitive periods, such as a tender process.
• Industry norms. In sectors where gift-giving is less common, even modest gifts may draw scrutiny. A business in a sector where gift-giving is more unusual is far more likely to be investigated, even if the value of the gift is lesser, than a business which does so frequently.

Any business who engages in gift-giving or corporate hospitality on any scale should remain vigilant and always exercise caution.

Why prevention is better than cure

For businesses, the stakes are high. Although the thought of bribery and corruption occurring may feel far-fetched to most business owners, it does happen. A reactive approach—retrospectively putting policies in place only after an issue arises—is not a legal defence when an employer is found guilty. The only adequate defence is proactive prevention and an established culture of anti-corruption.

By taking these steps, businesses can reduce their risk of financial penalties, reputational damage, and criminal charges. When it comes to compliance, preparation is the key to protecting your business.