Employment Law SOS: The distinction between hospitality and bribery

1 min read

Some of our department managers are invited to sports events by their relevant suppliers – do we need to stop this practice to ensure compliance with the Bribery Act, or is supplier hospitality permitted?

Under the Bribery Act 2010, hospitality and entertainment can potentially amount to bribery where it might influence or be thought to influence a person's decision in relation to business. While this may at first sight appear alarming, the government has also issued some guidance which makes it clear that the Bribery Act was not brought in to criminalise hospitality or promotional expenditure which is reasonable and proportionate. Therefore, as an employer, if your department managers are receiving offers of hospitality, careful thought needs to be given towards the motive for the hospitality on offer before deciding whether or not to accept it. Caution needs to be exercised if the hospitality appears to be excessive (either in terms of frequency or value) and consideration needs to be given as to whether the hospitality could be perceived as an inducement to win or secure new business. If it appears that the hospitality is being offered with the intention of somehow influencing one of your department managers, then it should be refused. On a more general point, in order to ensure all your staff are aware of the risks and act consistently in a way which does not breach the Bribery Act, consider putting in place a policy on hospitality and gifts so that staff are clear on what is and isn't acceptable.