Gifts at work: Is it a good or bad idea?

Gifts at work can be a difficult ground to navigate depending on your workplace and relationship to the recipient. Sometimes they are harmless and can build positive work relationships. However, in the alternative, some employees find it inappropriate and may be put off by the gesture. Keep reading to understand more about gifts at work. Don’t end up dismissed over whay you thought was a good gesture

My coworker keeps giving me gifts at work and it’s creepy

Gifts at work have been considered controversial in some circumstances. Specifically in circumstances where the recipient has felt as though there had been ‘strings attached’ to the gift. In the event where the gift was for no particular reason, very expensive, or attached to a message that they then owe something to the gift provider then the exchange may be considered sexual harassment. 

Sexual harassment is the event where the victim feels uncomfortable, humiliated, or upset due to something said or done by the perpetrator. The behaviour must have a sexual component and that a ‘reasonable person’ would likely feel upset by the act. There does not have to be recurring behaviour, or the intention to hurt the victim. However, those components are often involved nonetheless. 

The act of gift giving at work can be interpreted to mean that the recipient wants something in return. Particularly when there was not a specific event (like a birthday) or work specific reason (like retirement or end of financial year party) to justify it. And that idea of reciprocation can have a sexual component if the gifts are interpreted to be for a romantic reason. This may be because of the type of gift; whether it is jewelry, expensive, lingerie, or something else typically given to a partner. 

Therefore, it is advised to avoid gifts at work in case there is misunderstanding or misinterpretation to what is happening. There will be exceptions to the advice depending on the specific circumstances of the gift giving. Such as friendship outside of work, whether there is a power dynamic (manager to employee for example), reason for the gift, and what is the gift itself. 

HR say its not sexual harassment 

If the gifts at work are making an employee uncomfortable then it is important to inform Human Resources (HR) or another form of management. This gives them the opportunity to intervene and handle the matter in a professional and efficient way. However, these departments are typically not sexual harassment professionals and may try to diminish the gifts as harmless or noting to worry about. 

At the very minimum there should be intervention or warning to stop the behaviour that is making the recipient uncomfortable. Most large companies do have gift giving policies or procedures that can be referred to. If not, then consider raising the ensure with HR to create policies as a preventative measure. As gift giving is typically not relevant to work efficiency there should not be pushback about having someone talk with the gift provider to stop. 

If for some reason your employer refuses to intervene or ignores the complaints then you may want to consider lodging a General Protections claim or Sexual Harassment claim within the Fair Work Commission. 

Gift giving leads to $260,000 payout

In the case of Taylor v August and Pemberton Pty Ltd [2023] FCA 1313, a director of a jewelry company had given thousands of dollars in gifts to his employee. Amongst other activities this act of gift giving contributed to the employee, Ms Fiona Taylor, winning her case and receiving a landmark payout. 

Ms Taylor was an employee of a small jewelry store for 22 months while she experienced numerous unwanted acts by the Director, Mr Simon Grew. This included numerous expensive gifts including money, designer clothing, and jewelry. Furthermore, Mr Grew confessed his feelings for Ms Taylor, touched her butt, and would make sexual comments about her body. 

After Ms Taylor had complained about Mr Grew to the Australian Human Rights Commission (AHRC) his attitude changed for the worse. He began threatening her conduct at work, and demanded that all the gifts be returned back to him. Even threatening to call the police of she did not comply 

Judge believes employee’s story

When deliberating on a decision, the Judge emphasised the importance of context and that sexual harassment does not have to be explicit. And if subtlety in sexual harassment was ignored then it would be a disservice to the “infinite subtly of human interaction”[125]. 

Due to the above reasoning the Judge did find Mr Grew guilty of sexual harassment on multiple instances. Including gift giving after Me Grew had confessed his feelings. Leaving an indication that the gifts were of a sexual or of a romantic nature. Furthermore, Mr Grew’s touching of Ms Taylor’s butt in 2019, and the declaration of his feelings on two occasions knowing that the relationship was unwelcome by Ms Taylor. 

As a remedy Ms Taylor received the landslide payout of $268,000 in damages. This was a combination of general damages, aggravated damages, lost earnings, lost superannuation, and more. 

This case shows that gift giving, in the correct context, can definitely be considered an act of sexual harassment and should be brough to someone’s attention if the act is making an employee uncomfortable. Employees should not allow subtlety to prevent them having a safe and healthy work environment, 

Gifts are unwanted at work

Gifts not only can be considered an act of sexual harassment, but may just leave employees feeling genuinely uncomfortable. Not everyone appreciates gift giving and the employees’ wishes and feelings should be respected. 

One example is the case of Kevin Berling v. Gravity Diagnostics in the United States. Mr Berling’s workplace had organised him a birthday party despite him refusing one due to his anxiety disorder. Supposedly, the individual responsible for workplace events had forgotten about his request. As a result of learning about the party Mr Berling suffered a panic attack and left prior to the event to practice breathing techniques in his car. Missing the party entirely. 

Unfortunately, Mr Berling was criticised and confronted for his behaviour as his employer’s interpreted his actions as rude. He was accused of “stealing other co-workers’ joy”. The confrontation had resulted in another panic attack. 

Three days later Mr Berling was dismissed “for his actions the week before.” His managers tried to claim that he was acting ‘violent’ in the meeting where he was confronted. Mr Berling filed a discrimination claim on the basis of disability. After a two day trial the jury sided with Mr Berling. He received a total of $450,000 in damages. Partly due to lost wages, and for the embarrassment suffered. 

This case highlights how gifts are not universally liked and not everyone will appreciate them. At the end of the day to receive a gift does have social expectations and the recipient may not feel comfortable in that exchange. Therefore, always consider the gift in context to the recipient, or ask them directly prior to gift giving. 

Gifts at work may be a matter of policy 

Some workplaces have certain policies and procedures in place when it comes to gift giving. Typically in the context of receiving gifts from clients or customers as a way to deter from receiving bribes. However, it is recommended to review all workplace policies in case the company has additional rules or inter-company gifting procedure. Divergence from workplace policy may lead to dismissal. 

Gifts from subcontractor leads to unfair dismissal

In 2023, Mr Kaushang Shah was terminated from Team Global Express Pty Ltd (TGE) as a dispatch supervisor after accepting two gifts from a subcontractor. Mr Shah coordinated work for drivers who were also subcontractors. After investigation it was found that Mr Shah had accepted two bottles of whisky and allowed a subcontractor to build him a deck at his home. In exchange the subcontractors would receive more favourable drives. 

TGE had strict policies that stated employees could not receive any gifts that would cloud their judgement and were not in the course of work. If so then the gift should be declared. However, accepting alcohol or  tobacco was strictly prohibited.

Mr Shuh claimed that he never accepted the whisky and that he paid, or intended to pay, for the deck to be made. Furthermore, arguing the investigation was biassed and not all avenues were investigated. He upheld that he was being framed by the subcontractors. 

The Fair Work Commission upheld that Mr Shuh, on the balance of probabilities, did accept the whisky and had a free deck made for him. Therefore, his judgement was clouded from the gifts. Breaching the workplace policy and dismissing the unfair dismissal. He was fairly dismissed given the facts and circumstances. 

Remember to read the work policy 

In a similar case, Kostantina (Deana) Hatzisevastos v Iron Mountain Pty Ltd [2015] FWC 770, an employee was terminated for accepting a television and laptop from a supplier. 

The Company had strict policies that “all Company business transactions must be transparent, impartial, objective and free of outside influence”. With parameters that employees should not receive, favour, or benefit from interactions and gifts worth more than $100 AUD. There were some exceptions from the rules, however the employee in this case did not fit the criteria. 

Furthermore, the employee had undergone bribery and corruption training as part of her role. Where she explicitly agreed that she understood the policy and would abide by them. There was no argument that the employee did not know she was doing something wrong by accepting expensive technology. 

Due to the thoroughness of the policy and the employer’s strict adherence to the rules it was found that the employee’s dismissal was fair and her case was dismissed. 

Do I have to buy my coworkers gifts? 

In some cases employers may ask for employees to ‘chip in’ for going away or retirement gifts. This may be at the expense of the employee. However, in no circumstance should an employee feel forced to use their own money for another employee against their will. Furthermore, there should be no repercussions if an employee decided not to ‘chip in’. 

Employers can’t dictate how employees use their money. There may be circumstances, like purchasing uniforms, where employees may initially use their own money, however it is returned to them in their tax. There should not be a situation where employees feel forced to use their money by their employer. 

How to gift properly 

As explained, gifts at work may prove more controversial than initially thought. There are a number of considerations an employee or employer may want to consider prior to receiving or providing a gift. 

First, is to consider the context of the gift giving. Whether it is for an important milestone, or other occasion like retirement. Furthermore, the implications of who is receiving/providing the gift. Are they a good friend or someone you may have seen in the break room occasionally. It is also paramount to consider what the gift is. Whether it is impersonal and cheap or a luxury or romantic item. 

Secondly, consider the type of workplace being worked in. Some industries are more known for anti bribery policies and procedures. Therefore, always ensure gift giving or receiving is allowed within the workplace. Keeping note that in some circumstances outside of work conduct can impact employment and result in dismissal. 

If totally unsure then it is best to avoid gifts all together, or confirm in writing with a senior employee on the implication of the gift giving or receiving. 

It is important to note that genuine gifts from a place of friendship or respect should not be banned from the workplace. Building workplace relations is usually a positive endeavour and should be facilitated. However, it is important to recognise context and call out bad intentions when they do arise.

Understand your workplace rights and the do’s and don’ts at work

If you believe you were unfairly dismissed or harassed, our team of highly experienced workplace mediators can help. We at A Whole New Approach have been assisting Australian workers seek justice and advocate for healthy workplaces for over two decades. AWNA are not lawyers, but the nations leading representatives and commentators.

With a free and confidential consultation, our team can assess your eligibility for an unfair dismissal claim, or harassment issues. And we can guide you through the process of lodging your claim with the Fair Work Commission.

Get the help you need today by calling us on 1800 333 666.

Articles similar to: Gifts at work, is it okay?

The Power of Relationships at Work

Misconduct at Work: A Guide for Employees