Despite government postponing new law, legal advisers say firms should comply to win work abroad

Contractors would be “ill advised” to delay the introduction of policies to comply with the Bribery Act, despite the government postponing its implementation, legal experts have warned.

The act, due to come into force last October before being postponed until April, was pushed back for a second time this week, after the Ministry of Justice announced that guidance for the law is to be reviewed.  

A spokesperson for the department said: “We are working on the guidance to make it practical and comprehensive for business. When the guidance is published, it will be followed by a three-month notice period before implementation of the act.”

The act will introduce several offences, including a corporate offence for failing to prevent bribery by people working on behalf of a business, and a rise in the maximum penalty for those found guilty of bribery from seven to 10 years’ imprisonment, with an unlimited fine.

The delay was welcomed by Stephen Ratcliffe, director at the UK Contractors Group: “The way the act is drafted is flawed,” he said. “There’s a particular worry that in some countries things like tipping people could be considered bribery.”

The Organisation for Economic Cooperation and Development’s has warned of “robust action” if UK firms do not comply with the act’s aims despite the delay in implementation.

OECD threat UK firms could be blacklisted

”Companies would be ill-advised to delay policies to comply with the thrust of the act. The OECD has the power to blacklist UK exporters, and, were it to make such a move, British companies could find themselves in considerable difficulties when trying to secure international contracts. Those placing the contracts will require more due diligence with regard to the anti-corruption policies of UK suppliers. That in turn could make UK Plc less competitive.”
Ron Reid is partner in law firm Shoosmiths

Ron Reid, partner, Shoosmiths

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