Legal Issues Surrounding Collecting Money for Office Gifts

Office personnel sometimes pool money to buy gifts for each other.

If you've worked in an office, you probably have been asked to contribute to a gift for someone's birthday or retirement. The list of celebratory occasions is never-ending. While collecting money for such gifts is a nice thought, some legal issues should be considered.

Agency

When coworkers pool money together and entrust one person to buy the gift, an agency relationship has been created. This is a legal relationship in which the group entrusts an agent to act on their behalf for a stated purpose. The agent's failure to act within the limits of the relationship--in this case, failure to purchase a gift as directed--can result in agent liability for loss of the money.

Embezzlement

To be guilty of embezzlement, a jury must find that the accused was entrusted with property and that he used that property in a way that deprived the true owner of her ownership interest. If someone in the office collects money for a group gift and then uses the money for himself, he has committed embezzlement.

Corporate Policy

As a matter of employment law, employees should consult corporate policy and handbooks to make sure that group pooling of money for a gift is acceptable. Because of the potential for conflict, some companies prohibit such activity. Also, the gift should not be one that could result in claims of discrimination or harassment.

References

• The 'Lectric Law Library: Agency
• Thiesen Clock & Novelty: Office and Coworker Gifts
• Findlaw: Embezzlement