Freebiegate: when should you decline gifts at work?

Prime Minister Keir Starmer and his wife have had anything but a cruel summer – having reportedly accepted free Taylor Swift concert tickets worth hundreds of pounds.

This latest controversy, known as “freebiegate”, left many to criticise Starmer for accepting such lavish handouts, especially during a time of economic difficulty for so many Brits. 

While Starmer has repaid more than £6,000 of those gifts – including four tickets to the races and a clothing rental agreement with a high-end designer – it certainly raises questions about workplace ethics and what is and isn’t acceptable (and legal) when it comes to receiving “free stuff”.

What’s the difference between a freebie and a bribe?

It’s important to know that while Starmer’s taking freebies could be perceived as questionable, technically, it doesn’t count as bribery.

What is a freebie?

In a workplace context, a freebie from a supplier or stakeholder is a complimentary item or service provided to employees or decision-makers at a company as a gesture of goodwill or relationship-building. Examples can include promotional items (like branded pens, calendars or tote bags), as well as more financially valuable perks like event tickets, dinners or gifts.

However, while some free items may be uncontentious and within ethical boundaries, there is a fine line between appropriate and excessive, when they risk potentially influencing business processes, decisions or outcomes. For this reason, many companies set guidelines to ensure that accepting such gifts doesn’t compromise professional integrity or create conflicts of interest.

What is bribery?

Put simply, bribery is when someone gives or receives a bribe to gain a business advantage for either themselves or their organisation. The Serious Fraud Office (SFO) reported a “record number” of bribery-related trials in 2022-2023 – with bribery settlements hitting £764 million.

Bribes can take many forms, including money, gift cards, luxury vacations, concert or theatre tickets and personal favours. Under the Bribery Act 2010, it is a criminal offence for employees to accept a gift for carrying out a function improperly.

For example, a procurement officer might be offered a luxury watch if they approve a supplier’s tender, leading the officer to overlook better offers from other suppliers or ignore quality and pricing considerations. Or a government official might receive tickets to an exclusive sporting event from a construction company bidding for a lucrative contract.

What are the rules around workplace gifts?

As it isn’t illegal to give and receive workplace gifts, it’s ultimately up to individual companies to decide on a workplace gifting policy.  This policy should outline what constitutes acceptable and unacceptable gifts, including specific monetary limits and circumstances under which gifts may be accepted. It’s equally important to provide regular training sessions that educate employees about the policy’s significance, real-life scenarios and potential risks that could create conflicts of interest.

For example, the UK government has its own gifts and hospitality policy for its employees to follow. This includes:

• A gift shouldn’t be accepted if the cumulative value exceeds £200 in any 12-month period, or £50 for any one gift. 
• The gift must be given for an appropriate reason and must only be for a “one-off” occasion. 
• The gift shouldn’t be given in certain circumstances, for example, before the award of a contract.

Employers should set up clear guidelines for accepting gifts from suppliers or any other external stakeholders. This will help employees understand what constitutes an appropriate gift and what might be considered excessive, inappropriate or potentially contentious. It’ll also protect the company from legal and reputational risks and ensure that business decisions are made objectively and in the organisation’s best interests.

Additionally, employers should implement a straightforward reporting process for situations where an employee feels unsure about a gift or encounters something that raises concerns. 

What makes an appropriate workplace gift?

It’s important to know what warrants an appropriate gift from external stakeholders.

Typically, appropriate gifts should be small tokens of appreciation that don’t create a sense of obligation or influence business decisions, such as awarding lucrative contracts or continuing to expand business with a particular vendor.

Accepting workplace gifts is simply about using sound judgement. 

You don’t need to contact the authorities if your boss gives you a bottle of champagne to celebrate your hard work, but if a potential supplier presents you with a  £2,000 Gucci gift card with “no strings attached” just before you decide whether to work with them, you’d be advised to remember the old adage –  “there’s no such thing a free lunch”.