Many small to medium-sized firms in the Midlands are failing to recognise the full implications of the new Bribery Act – leaving a “ticking timebomb” across the region – experts have warned.

The warning comes from local commercial law expert Raymond Joyce, who is urging the region’s businesses to ensure that all employees understand and abide by the new law to avoid potentially costly court action.

Mr Joyce, who heads up the commercial law team at the Birmingham office of lawyers Freeth Cartwright said: “The UK Bribery Act came into force on 1 July this year after what seemed like an eternal countdown and a double delay.

“But despite having plenty of preparation time, there is evidence to suggest that a high proportion of businesses have inappropriate HR, hospitality, training and recruitment policies.

“The resultant employee ignorance is a ticking timebomb, leaving organisations highly vulnerable to litigation.

“In a recent extensive survey published by one of the UK’s top accountancy firms, the statistics revealed that there is a worryingly high level of employees still willing to behave unethically.

“In addition to a significant minority willing to offer cash payments deemed illegal under the Act, around one in six employees would, unwittingly, offer personal gifts or services to win business.

“Such attitudes are unacceptable and the region’s bosses should be aware that ignorance can never be a defence for non-compliance.

“It is therefore essential that if a business is to protect itself from greater regulatory scrutiny, then everyone at every level of the organisation must understand what constitutes bribery and what is illegal under the new act.”