Seasonal scrutiny for those Christmas extras

Monday 12 December 2011

Check where you stand before your business or employees accept a goodwill gift from a grateful client - it has the potential to land you in legal bother, warns Hazel Burt of MacFarlane Gray accountants in Stirling.

Guidelines help companies ensure that any Christmas gifts are given for the right reasons

Christmas may be the season of giving, but new legislation means you need to be very careful about what you take, as a recent article on the Royal Mail staff website advised employees.

The My Royal Mail article informed staff that they should not accept (or give) gifts with a value of more than £30.

The Bribery Act 2010 was implemented on 1 July this year and applies UK wide (it affects Scotland as a result of a Legislative Consent Motion agreed earlier this year). The penalties for bribery are serious: individuals face unlimited fined and up to ten years imprisonment and businesses also face unlimited fines. With such significant potential penalties for businesses – even if they unaware of the offence - large organisations, including the Royal Mail, are putting policies and procedures in place to prevent landing on the wrong side of the law. The UK Government’s advice on the act confirms the employer's responsibility: "Your organisation may be liable for failing to prevent a person from bribing on your behalf but only if that person performs services for you in business." Having robust procedures in place to discourage an offence can help an organisation to avoid prosecution. The guidance says: "There is a full defence if you can show you had adequate procedures in place to prevent bribery. But you do not need to put bribery prevention procedures in place if there is no risk of bribery on your behalf." Those expecting to enjoy a Christmas drink or planning to share a mince pie with business contacts need not cancel their plans just yet. While caution is advised, the law does not prohibit hospitality. For hospitality to amount to a bribe, the guidance states: “there must be an intention for financial or other advantage to influence the official in his or her official role and thereby secure business or a business advantage.” Bona fide hospitality (promotional or other business expenditure) that is reasonable and proportionate for your business is unlikely to fall foul of the act unless it is intended as a bribe specifically to get business, keep business, or gain a business advantage. If your organisation has not reviewed the requirements of the act, undertaken a risk assessment and, if appropriate, put adequate policies and procedures, now is the time to do so. The bribery act: official guidance

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Seasonal scrutiny for those Christmas extras

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