INSIGHT: You Better Check Twice Before Sending That Holiday Corporate Gift

Gift-giving during the holidays can bring so much happiness—and a little heartburn—for lawyers and their clients, alike.

Surveys of managers and employees conducted by legal compliance consultancy Seyfarth Shaw at Work found that many report experiencing holiday gift-giving stress when choosing presents for work colleagues. For their part, attorneys may feel that they are impinging on client traditions, when providing cautions and advice in this festive area; one that can also be fraught with business and legal peril.

In fact, more than 60 percent of employees whose companies have an actual gift policy report confusion regarding what is and is not acceptable.

Below are some horror stories from the files of attorney Philippe Weiss, president of Seyfarth Shaw at Work (SSAW), that should make any lawyer think carefully about the importance of clear guidance and proactive client planning:

• A company ended a vendor relationship after receiving nude shaped matching “his” and “her” drinking cups from one of the vendor’s executives at the holidays.

• A boss gave his globetrotting sales team “designer and eco-friendly” bamboo travel toothbrushes that he had bought while abroad. The entire team immediately started wondering whose personal dental hygiene was being deemed questionable.

• A Secret Santa exploding confetti bomb gift led to a startled octogenarian doorman falling down a set of stairs.

• An employee gave her boss a book on how to “manage others more decisively.” The boss’s next termination was pretty decisive.

Of course, things can always be worse: one team leader at a client company spent the $500 he had been given for the holiday employee gift fund on a drunken night out with his ex-girlfriend … and on their identical heart tattoos.

First Question: Policy or No Policy When it Comes to Holiday Presents?

If a client’s employees regularly exchange gifts—or past holiday present sharing led to any complaints, guideline or policies would be worth considering. A new policy may also be appropriate if your client senses a prevailing sentiment among employees and co-workers that gifts are expected. A number of companies have gone farther, and prohibited gift giving altogether, although this approach may face practical enforcement barriers, particularly with respect to groups of employees who share longstanding one-on-one connections.

Some companies find it effective to draw from and adapt/apply relevant standards in existing third-party and vendor gifting rules. Employees may better understand and appreciate the importance of holiday gift guidelines vis-à-vis each other, if they are placed in the context of similar policies that talk about appearances, impropriety and perceived conflicts of interests.

In other cases (particularly in environments where holiday gifting is far less common), applying the relevant provisions of an existing code of conduct and harassment and safety policies (as well as overall management consistency requirements) may provide sufficiently effective safeguards.

A Naughty and Nice List

Here are tips when advising clients on “naughty” (not so safe) vs. “nice” holiday gift practices.

• Buying for the bosses. Advise clients that managers should be cautious not to accept gifts from subordinates – which means having a verbal “tactful turndown” at the ready.

• Demanding that others pony-up for a group gift. Remind those you counsel that all gifting should be voluntary.

• Gifts that go on the body. Clothes, jewelry and body oils are included in this category. The general rule is: the closer to the skin (like underclothes) the riskier.

• Presents with potentially romantic overtones. Chocolates, flowers, perfume or that invitation to a one-on-one carriage ride and cocoa tasting might all fall into this group.

• Religious gifts—or those relating to national origin, ancestry, race or other protected groups.

• Grand gestures for specific employees. They result in inconsistency and send a signal of possible favoritism. If a client absolutely wants to give its employees gifts, ensure that the process—and the gifts themselves—are entirely consistent.

• Cash (even gift cards may be taxable, as income). An increasing number of company gift policies prohibit gift cards. In some cases, low value certificates redeemable for specific goods might be a viable, and safe, option. However, bring-in the accountant/CFO to confirm what company-wide gifts will work, in this vein.

Other Cautions and Considerations When Advising Clients:

• Go for small gifts and be careful about “gift-flation.” Increasing the value of gifts each year creates an expectation for the future.

• If your client’s employees engage in a Secret Santa-type gift grab bag event, it is important that dollar amounts of purchased remain small and participants are reminded of “appropriateness’” rules. Again, clients should inform their own employees that any gift-sharing participation is entirely optional.

• If your client receives mountains of holiday cookies or treats from grateful vendors, explain the importance of dividing-up the edible loot equally with everyone, including the mailroom and maintenance teams. Clients should view these sorts of vendor gestures as a “common gift” to all. Some companies go as far as immediately donating such third-party offerings to a local food bank.

What’s Always Nice

For any client (and especially those that may have faced any prior holiday gift issues) making a business donation to a worthy cause, in the name of all employees, is about as (legally and morally) nice as they can hope to get.

Beyond that, don’t forget to encourage client executives and bosses to express gratitude to others in person.

The best gift this holiday season is often a leader’s sincere “Thank you.”

Author Information

Philippe Weiss is the president of Seyfarth Shaw at Work/WorkRight Solutions, the firm’s dedicated compliance services and training subsidiary. Weiss works with companies and organizations of all sizes to develop top-down respect-focused initiatives and has been called upon by legislative task forces for #MeToo-related testimony on improving workplace culture.