Unregulated gift acceptance can lead to misunderstandings, perceived favouritism, or even accusations of bribery. According to a 2022 report by Transparency International, 54% of UK employees said they had encountered situations where gifts or hospitality might influence business decisions. While most gifts are intended as goodwill, unclear boundaries can blur the line between a friendly gesture and undue influence. Under the Bribery Act 2010, offering or accepting gifts that could be seen as influencing improper behaviour may constitute a bribery offence. Businesses and individuals can face severe penalties, including fines and or even a prison sentence, making it crucial to have clear policies in place to define acceptable practices and ensure compliance

How to Handle Awkward Situations
Situations involving unwelcomed gifts can be extremely awkward and knowing how to handle them is critical to avoid any upset or relationship damage. Employees may occasionally encounter tricky scenarios, such as:

Unsolicited Gifts: If returning the gift might offend the sender, consider donating it to charity or sharing it among the team.

High-Value Gifts: If declining is impractical, document the gift and inform your line manager immediately.

Establishing and enforcing a clear gift policy brings several important benefits. It helps protect your company’s reputation by reducing the risk of unethical behaviour or perceived bias through transparency. Employees also gain confidence, as clear guidelines eliminate uncertainty and pressure when handling gifts. Additionally, a consistent policy ensures fairness, ensuring all employees are treated equally and preventing accusations of favouritism.

Key Considerations for a Gift Policy
A good gift policy strikes a balance between maintaining ethical standards and respecting cultural or industry norms. Here’s what to include:

1. Define Acceptable vs. Unacceptable Gifts
   Specify what types of gifts are acceptable. For example, modest items like branded stationery or festive hampers might be fine, while high-value or extravagant items should be declined. Clarify items like cash or gift cards, which may be deemed inappropriate.
2. Set a Value Threshold
   Establish a monetary limit for gifts to eliminate ambiguity. For instance, you could allow gifts under £50 but require anything above to be declared or declined.
3. Implement a Reporting Process
   Create a simple procedure for employees to declare received gifts. This fosters transparency and ensures managers can review and approve any higher-value items.
4. Consider Cultural Sensitivities
   Some cultures view gift-giving as an essential part of building trust. A thoughtful policy will accommodate these practices while maintaining ethical boundaries.
5. Hospitality and Entertainment
   Extend your policy to cover hospitality, such as event tickets or meals. Specify what’s acceptable and when prior approval is required.

Even the best policies are ineffective if employees aren’t aware of them. Regularly communicate your gift policy through training, team meetings, and internal platforms. During the holiday season, a friendly reminder about the rules can help employees feel confident in handling gifts appropriately.

Need help developing or updating your company’s gift policy? At Primed, we specialise in providing expert guidance on workplace compliance and best practices. Contact us today for tailored support and ensure your business is prepared for the festive season and beyond.