Law

Gifts in the workplace: What’s allowed, and what isn’t?

17/12/2025

For many employees, gifts are a normal part of working life: a calendar for Christmas, an invitation to lunch, or a small token of appreciation for a successful collaboration. But when are such gifts allowed, and when can they have legal consequences?

 

WU researcher Jennifer Schwab

Accepting gifts can be problematic on multiple levels, including legally. In serious cases, it may even result in criminal liability, such as in instances of bribery or corruption. Competition law issues can also arise if gifts are used to secure unfair advantages for certain companies. Public sector employees are subject to particularly strict disciplinary rules. Even when no criminal offense is involved, accepting gifts can have civil law implications. WU researcher Jennifer Schwab studies the dos and dont’s regarding gifts in the workplace under Austrian civil law.

A small gesture with big consequences
From a civil law perspective, any benefit can be considered a gift. This includes not only money but also in-kind benefits, debt relief, or other perks. All employees have a duty of loyalty to their employer, which requires them to protect their company’s interests. This means that accepting gifts can be a legal no-no if the gifts in question may influence business decisions or harm the organization.

Employees who negotiate with third parties, conclude contracts, or prepare business transactions on behalf of their employer are generally not allowed to accept any commissions or other benefits from third parties, unless the employer has explicitly allowed or tacitly accepted it. This applies to employees who solicit bids, negotiate with suppliers, are involved in awarding contracts, or prepare agreements.

The potential consequences of wrongdoing
Employees who break these rules may face civil law consequences: Impromper gifts may have to be returned, and claims for damages may arise if any harm has occurred. Agreements may be legally invalid, while the gifts or commissions cannot be kept or enforced in court. In addition, consequences may also result under labor law, including dismissal in serious cases.

It is important to avoid even giving the appearance that an employee’s personal gain may influence their professional decisions. Regardless of whether the employer has suffered any actual damage, simply accepting a benefit can be legally problematic. Gift acceptance can also have criminal law implications if it qualifies as bribery or corruption. In such cases, state-imposed penalties may apply, regardless of the employment relationship.

What types of gifts are allowed?
Not every gift is automatically off-limits. Generally accepted low-value items, like small promotional gifts, calendars, or invitations to a reasonable business meal, are usually allowed. Whether a gift is permissible always depends on the specific context, however: the industry, the employee’s role, the occasion, and the frequency of gifts.

Many employers lay down rules on gift acceptance in their employment contracts or compliance policies. These regulations may specify value limits, require specific approvals, or ban gifts entirely. In general, employers are allowed to impose such rules, provided they are reasonable and justified.

Reference

Schwab, Jennifer (2025). Zivilrechtliche Grenzen der Geschenkannahme im Arbeitsverhältnis. In: Zeitschrift für Arbeits- und Sozialrecht (ZAS), 2025(5), 235-242. https://rdb.manz.at/document/rdb.tso.LIzas20250504

Jennifer Schwab on accepting gifts and labor law considerations in the podcast “MANZ Recht aktuell”: https://www.youtube.com/watch?v=z3zNHJH7hIA

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