Do employees need to be cautious of those bearing gifts?

Whether it’s the perks of a particular job or a show of gratitude from a grateful client or customer, should accepting any gift for the job you do really be a problem?

Willingly taking additional reward for performing your required job duties can be a delicate matter.

Being recognised for doing a good job or receiving a show of appreciation for what you do, often helps to build and cement good and productive working relationships, but it also carries potential risks and ethical dilemmas.

It is a topical subject, and one which has saw widespread disproval expressed for the actions of government ministers and their acceptance of a range of different expensive and lavish gifts.

The BBC reports that Prime Minister Sir Keir Starmer has paid back more than £6,000 worth of gifts and hospitality received since becoming prime minister, following a backlash over donations [1] cited 8.10.24

The prime minister is said to be covering the cost of six Taylor Swift tickets, four tickets to the races and a clothing rental agreement with a high-end designer favoured by his wife, Lady Starmer.

It comes after Sir Keir and other cabinet ministers faced weeks of criticism for accepting freebies from wealthy donors.

For most employees, certainly those in a professional setting, an employer will have a particular policy that will detail the requirement and need for transparency when accepting gifts, or make it expressly clear that it is not allowed.

For example, civil servants must not accept gifts or hospitality from anyone which might reasonably be seen to compromise their integrity [2] cited 8.10.24

It is easy for a worker to view an act of generosity from a client, in recognition for their work, as a normal and natural part of that particular working relationship.

The idea that doing so could ever be considered corruption or bribery is unlikely to be given even cursory consideration, by many employees.

However, it is something businesses are conscious of, which is why many organisations now have a specific and recognised policy in place to cover the acceptance of gifts, benefits and hospitality.

The start of this month saw a new law introduced to ensure workers keep all of their hard-earned tips [3] cited 8.10.24

The law applies across industries, but is expected to benefit those working in restaurants, cafes, bars, pubs, hairdressers, or as taxi drivers the most.

The change will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.

If an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.

Here we provide a guide for employees on the do's and don'ts of accepting gifts from clients and customers, the dangers involved, and the importance of transparency in certain professions.

Five do's and don'ts when accepting gifts

Do's

1) The most important thing is to understand any rules, policy or guidelines your employer has in place. Be fully aware of any policy on accepting any type of gift. It will ensure you do not breach any strict guidelines, which may be in place to prevent conflicts of interest.

2) You may not give a second thought to being given a work-related gift as a sign of appreciation but, regardless of what it is, it is always best to be transparent and let your employer know. It will help to avoid any later suggestion you may have done something wrong, or failed to uphold standards.

3) There can, obviously, be some small gifts, such as branded pens or stationary which can generally be accepted without concern. More lavish and expensive gifts, however, are always worthy of more scrutiny and consideration.

4) With international clients the act of giving gifts can be part of a particular culture, so be aware of cultural norms and practices. In some cultures, refusing a gift can be seen as disrespectful, so a degree of tact and diplomacy may be needed.

5) It is always worth being careful with any presents you are given, so keeping a record of gifts e.g. who it is from, date received and value is worthwhile. Having such a record could be important if any subsequent concerns are raised.

Don'ts

1) It can be flattering to be offered a high value freebie, but it can sometimes be best to, effectively and politely, say ‘thank you, but no thank you.’ Accepting such gifts can give the impression of bias or favouritism.

2) Avoid accepting gifts during any negotiations on contracts or during any bidding  process, which could be viewed as an attempt to influence decision making.

3) The use of cash nowadays is not as common as it once was, but accepting cash as a gift is generally considered inappropriate and could create ethical or legal problems for you.

4) In any line of work you can build good and productive relationships with certain clients and customers, but be careful if a particular one is regularly giving you gifts. It can be a red flag, certainly give the wrong impression, and should be avoided.

5) A show of generosity and receiving a gift can bring joy to both the giver and the receiver. It is vital, however, that you do not let any presents you receive influence or sway your professional judgment or decision-making.

Some dangers in accepting work-related gifts

The act of gift giving can be well-intentioned, but in a professional setting it can create several potential dangers:

• It can lead to a conflict of interest where personal interest may, or could be perceived to, affect professional duties. It can also, consciously or unconsciously, create a temptation to favour the gift-giver, and compromise the integrity of your decisions.

• We probably all like to think we are capable of being fair, impartial and not persuaded by any obvious or blatant attempt to influence us in any way. But even if accepting any type of gift does not sway your actions, it can easily give that impression to colleagues, clients and customers, with a risk it could harm the reputation of your employer.

• Under the Bribery Act 2010, accepting gifts that could be seen as a bribe is illegal. It can lead to significant financial penalties and in the most serious cases a prison sentence. [4] cited 8.10.24

• There can be professional consequences in accepting any unsuitable gift that breaches your employer’s policy. It could lead to formal disciplinary action up to and including dismissal.

• If a gift you accept can ever be considered inappropriate, based on the role you do and duties you perform, it could damage the relationship between you and the giver and lead to mistrust and potential loss of business.

Professions that need to be careful in accepting gifts

We mentioned earlier how civil servants are subject to strict rules regarding accepting gifts, which are designed to prevent corruption and maintain public trust.

The General Medical Council has in place comprehensive and clear guidance for doctors, nurses, and other healthcare providers on accepting gifts [5] cited 8.10.24

Legal professionals such as solicitors and judges have to maintain impartiality and avoid any actions that could be seen as in any way compromising their integrity.

The financial sector has regulatory standards covering  banking and finance, which mean employees must exercise caution about accepting gifts to prevent conflicts of interest and to ensure compliance.

Teachers and those working in schools can often receive small gifts from parents during the Christmas period, or at the end of the school year. There has been a trend in recent years for parents to splash out on expensive and lavish gifts e.g. spa day and expensive gift vouchers. Such gifts should be avoided to maintain fairness and impartiality in professional duties. [6] cited 8.10.24

Declaring Gifts

Declaring gifts is essential to maintain transparency and trust in professional relationships.

It ensures that you are held accountable for your actions, transparent, avoid breaching your employer’s policy or any laws, protects your personal and professional reputation and means your integrity cannot be called into question.

Finally

Receiving gifts and generous and extra recognition for your work can be a very good thing, but it can also be a minefield of ethical and legal challenges.

But in adhering to the do's and don'ts detailed above, understanding the potential dangers, and recognising the importance of transparency, you can be rewarded in the right manner, act with integrity and maintain professionalism.