Safeguarding integrity with a gift clause

A gift clause establishes the conditions under which your employees may accept gifts from customers, suppliers, or other third parties — ranging from a total ban to a notification requirement with exceptions. This prevents conflicts of interest and protects the integrity of your company. Below, you can read what a gift clause is, why it is important, and how to draft one.

What is a gift clause?

A gift clause is a provision that regulates the conditions under which an employee may receive gifts or other benefits from third parties, such as customers and suppliers. It can range from a complete prohibition to specific rules and restrictions. For example, you can make exceptions for anniversary gifts or gifts on special occasions (such as a wedding or the birth of a child), and require the employee to report received gifts.

Why is a gift clause important?

Gifts from customers or suppliers can lead to conflicts of interest or even fraud. They can influence employees to make decisions that are not in the best interest of the company. A clear gift clause in the employment contract:

• makes clear to employees what is and is not allowed;
• protects the integrity of the company;
• promotes transparency in employee conduct.

How do you draft a gift clause?

When drafting, first decide whether receiving gifts is permitted: a total ban, or allowed under conditions. Pay attention to the following:

• Make everything clear and concrete to avoid discussions;
• ensure that the clause is reasonable and fair;
• consider a reporting obligation for greater transparency;
• Determine clear sanctions for violations, ranging from a warning to — in serious cases — immediate dismissal.

In the employment contract or in regulations?

You can include a gift clause in the employment contract or in company regulations, an employee handbook , or integrity regulations. Regulations offer more flexibility because they are easier to amend than an employment contract. In the employment contract, you then refer to the regulations. However, ensure that:

• employees are sufficiently aware of the regulations;
• the sanction provisions are consistently complied with.

Frequently Asked Questions

Am I allowed to prohibit employees from accepting gifts?

Yes, you can include a total ban or allow gifts subject to conditions, as long as the clause is reasonable and fair and clearly communicated.

Does a gift clause need to be included in the employment contract?

That is not necessary. It can also be included in regulations or an employee handbook to which you refer in the employment contract. Regulations are more flexible to amend.

What sanction can I impose for a violation?

Depending on the severity, ranging from a warning to summary dismissal. It is important that you clearly document the sanctions and apply them consistently.

Does a mandatory reporting requirement help?

Yes. A disclosure obligation ensures transparency: the employer knows which gifts are received and can thus identify conflicts of interest in a timely manner.

Drafting a gift clause or integrity regulations?

We assist you in drafting employment contracts, company regulations, and integrity provisions, ensuring they are legally correct and tailored to your organization.

Our employment law are happy to assist you. Schedule a no-obligation intake consultation.