Gifts, Benefits & Hospitality Policy

The Gifts, Benefits & Hospitality Policy (the Policy) states the Legal Practitioners’ Liability Committee’s (the LPLC) position on providing or responding to offers of Gifts, Benefits and Hospitality.

The Policy is intended to support Employees, members of the Legal Practitioners’ Liability Committee (the Committee) and the LPLC to avoid conflicts of interest and maintain high levels of integrity and public trust.

The LPLC has issued the Policy to support behaviour consistent with the Code of Conduct for Victorian Public Sector Employees (the Code). All Employees are required under clause 1.2 of the Code to comply with the Policy.

The Policy applies to members of the Committee, Employees, contractors1, consultants and other Business associates.

The Policy does not apply to hospitality offered by the LPLC where offered as part of official business and/or where the reason for accepting hospitality is consistent with the LPLC’s functions and objectives and within the Employee’s role and area of responsibility.

The Policy has been developed in accordance with requirements outlined in the Minimum Accountabilities2 for Managing Gifts, Benefits and Hospitality (the Minimum Accountabilities) issued by the Victorian Public Sector Commission (the VPSC). In developing the Policy, the LPLC has been guided by the VPSC’s model policy and the Victorian Legal Services Board’s (the VLSB) Gifts, Benefits & Hospitality policy.

The LPLC is committed to upholding the following principles that underpin the Policy:

Impartiality

Individuals have a duty to place the public interest above their private interests when carrying out their official functions. They will not accept Gifts, Benefits or Hospitality that could reasonably raise a reasonable perception of, or actual, bias or preferential treatment. Individuals do not accept offers from those about whom they are likely to make business decisions.

Accountability

Individuals are accountable for:

• declaring all non-token offers of Gifts, Benefits and Hospitality
• declining non-token offers of Gifts, Benefits and Hospitality, or where an exception applies under this policy, seeking approval to accept the offer, and the responsible provision of Gifts, Benefits and Hospitality.

Individuals with direct reports are accountable for overseeing management of their direct reports’ acceptance or refusal of Non-token Gifts, Benefits and Hospitality, modelling good practice and promoting awareness of Gifts, Benefits and Hospitality policies and processes

Risk-based approach

The LPLC through its policies, processes and the Audit and Risk Committee will ensure Gifts, Benefits and Hospitality risks are appropriately assessed and managed.

People Leaders will ensure that they are aware of the risks inherent in their team’s work and functions and monitor the risks to which their direct reports are exposed.

Integrity

Employees strive to earn and sustain public trust through providing or responding to offers of Gifts, Benefits and Hospitality in a way that is consistent with community expectations. Employees will refuse any offer made to them that may lead to an actual, perceived or potential conflict of interest.

5.1. Management of offers of Gifts, Benefits and Hospitality

This section sets out the process for accepting, declining and recording offers of Gifts, Benefits and Hospitality. Any exceptions to the Policy must have the prior written approval of the Chief Executive Officer or Chair of the Committee.

Conflict of interest and reputational risks

When deciding whether to accept an offer, individuals should first consider if the offer could be perceived as influencing them in performing their duties, or lead to reputational damage. The more valuable the offer, the more likely that a conflict of interest or reputational risk exists. A conflict of interest resulting from the acceptance of a gift, benefit or hospitality is not always clear to those who have them. Individuals should consider the GIFT test at Schedule 1 of the Policy in making their decision. Individuals who are unsure about the acceptance of a gift, benefit or hospitality, or the application of this policy should ask their People Leader or General Counsel and Secretariat for advice.

5.2. Circumstances where offers must be declined

Individuals should consider the GIFT test at Schedule 1 and the requirements below to help decide whether to refuse an offer. Individuals are to refuse offers:

• likely to influence them, or be perceived to influence them, in the course of their duties or that raise an actual, potential or perceived conflict of interest
• could bring them, the LPLC or the public sector into disrepute
• made by a person or organisation about which they will likely make or influence a decision, particularly offers made by a current or prospective supplier, or made during a procurement or tender process by a person or organisation involved in the process (excluding Token Hospitality, such as coffee or sandwiches over a lunchtime meeting).
• likely to be a bribe or inducement to make a decision or act in a particular way
• that extend to their relatives or friends
• with no legitimate business benefit
• of money, or used in a similar way to money, or something easily converted to money (for example, shares, gift cards)
• where, in relation to hospitality and events, the LPLC will already be sufficiently represented to meet its business needs
• where acceptance could be perceived as endorsement of a product or service, or acceptance would unfairly advantage the sponsor in future procurement decisions
• made by a person or organisation with a primary purpose to lobby Ministers, Members of Parliament or public sector agencies
• made in secret.

If an individual considers they have been offered a bribe or inducement, the offer must be reported to the Chief Executive Officer who should report any criminal or corrupt conduct to Victoria Police or the Independent Broad-based Anti-Corruption Commission.

5.3. Token offers

While the primary determinant of a Token offer is that it would not be reasonably perceived within or outside the LPLC as influencing an individual raising an actual, potential or perceived conflict of interest, it cannot be worth more than $50.

If Token offers are made often by the same person or organisation, the cumulative value of the offers, or the perception that they may influence the recipient, may result in the offers becoming Non-token.

Subject to the requirements of section 5.2, individuals may generally accept Token offers without approval or declaring the offer on the Register provided the offer does not create a conflict of interest or lead to reputational damage.

Employees and Committee members must not, for themselves or others, seek or solicit Gifts, Benefits and Hospitality.

5.4. Non-token offers

Individuals can only accept Non-token offers if:

• there is a legitimate business for acceptance. It is offered in the course of the individual’s official duties, relates to the individual’s responsibilities and has a benefit to the LPLC, the public sector or the State; and
• its acceptance does not raise an actual, potential or perceived conflict of interest or have the potential to bring the individual or the LPLC into disrepute.

All offers worth more than $50 are Non-token offers and must be declared, approved in writing by an authorised approver (see Table 1 below) and recorded on LPLC’s Gifts, Benefits and Hospitality register (the Register). .

Individuals may be offered a Gift or Hospitality where there is no opportunity to seek written approval from their manager prior to accepting. For example, they may be offered a wrapped Gift that they later identify as being a Non-token Gift. In these cases, the individual must seek approval from their People Leader within five business days. Where the Gift would likely bring the individual or the LPLC into disrepute, the LPLC should return the Gift. If the Gift gives rise to a conflict of interest for the individual, the LPLC should either return the gift or transfer ownership to the LPLC to mitigate this risk.

Table 1: A list of Authorised Approvers

1. Declaration of Non-token Gifts, Benefits and Hospitality

A Gifts, Benefits and Hospitality Declaration Form (see Schedule 3)[3] (the Declaration Form) must be completed as soon as practicable after an Employee is offered or receives a Non-token Gift, Benefit or Hospitality (whether accepted or declined) and must be submitted to the General Counsel and Secretariat. The Declaration Form acts as written approval from People Leaders for the acceptance of any Non-token offer.

[3] The Declaration Form is also available for completion on the intranet.

5.6. Register of Non-token Gifts, Benefits and Hospitality

The General Counsel and Secretariat will record all Non-token Gifts, Benefits and Hospitality, whether accepted or declined, in the Register.

The business reason for accepting the Non-token offer must be recorded in the Register and should link to the individual’s roles/responsibilities on behalf of the LPLC and state the benefit to the LPLC, public sector or State. Individuals should be guided by the following examples of the appropriate level of detail to include in the Declaration Form (which in turn is recorded by General Counsel and Secretariat in the Register) when noting the business reason:

This information is collected in the Declaration Form which is completed by Employees and their People Leaders/Executives and then provided to the General Counsel and Secretariat for inclusion on the Register.

A public version of the register will be maintained by the LPLC. A subset of the information in the Register will be published on the LPLC website. The register on the LPLC website will be published at the end of the financial year and will cover the most recent and previous financial year.

5.7. Repeat offers

Employees should be aware of multiple offers of Token Gifts, Benefits and Hospitality made by the same person or organisation. Receiving multiple offers (Token and Non-token) from the same person or organisation can generate a stronger perception that the person or organisation can exercise influence on the recipient. However, cumulative Token offers are not required to be recorded in the Register unless they create a conflict of interest or may lead to reputational damage.

5.8. Ownership of gifts offered to individuals

Non-token gifts with a legitimate business benefit that have been accepted by an individual for their work or contribution may be retained by the individual where the gift is not likely to bring them or the LPLC into disrepute, and where their People Leader has provided written approval. Employees must transfer to the LPLC official Gifts or any Gift of cultural significance or significant value (over $50). When a Non-token Gift is received that cannot be retained by the individual, the recipient’s People Leader will decide how to dispose of the Gift in an appropriate manner. The disposal of any Non-token gift must also be recorded in the register. Some options for disposal include returning the Gift or donating the Gift to a charity.

Ceremonial Gifts are the property of the LPLC irrespective of its value and should be accepted by Employees on behalf of the LPLC. The receipt of ceremonial Gifts should be recorded on the Register but does not need to be published online.

5.9. Hospitality offered by Victorian public sector organisations

Victorian public sector organisations may provide hospitality to stakeholders, as part of their functions. When offered hospitality by a Victorian public sector organisation, individuals should consider the requirements of the Minimum Accountabilities. Accepted hospitality offered by a Victorian public sector organisation as part of official business does not need to be declared or reported, where the reason for the individual’s attendance is consistent with the LPLC’s functions and objectives and with the individual’s role.

5.10. The LPLC Providing Gifts, Benefits and Hospitality

This section sets out the requirements for providing Gifts, Benefits and Hospitality by the LPLC.

Gifts, Benefits and Hospitality may be provided when welcoming guests, to facilitate the development of business relationships, further the LPLC’s business objectives and to celebrate achievements.

When proposing to give a Gift or Benefit to another organisation or person, the required consultation is set out in Table 2 below:

Table 1: List of persons with whom consultation required

When deciding whether to provide Gifts, Benefits or Hospitality, or the type of Gift, Benefit or Hospitality to provide, individuals must ensure:

• any Gift, Benefit or Hospitality is provided for a business reason that furthers the conduct of official business or other legitimate organisational goals, or promotes and supports government policy objectives and priorities;
• that any costs are proportionate to the benefits obtained for the LPLC and would be considered reasonable in terms of community expectations. The ‘HOST’ test (see Schedule 2) provides useful guidance on matters to consider when making this assessment; or
• that it does not raise an actual, potential or perceived conflict of interest or have the potential to bring the LPLC into disrepute.

Containing costs

Individuals should contain costs involved with providing Gifts, Benefits and Hospitality wherever possible, and should comply with the financial probity and efficient use of resources guidance outlined in the Code.

The following questions may be useful to assist individuals to decide on the type of Gift, Benefit or Hospitality to provide:

• Will the cost of providing the Gift, Benefit or Hospitality be proportionate to the potential benefits?
• Is an external venue necessary or does the LPLC have facilities to host the event?
• Is the proposed catering or Hospitality proportionate to the number of attendees?
• Does the size of the event and number of attendees align with intended outcomes?
• Is the Gift symbolic rather than financial in nature?
• Will providing the Gift, Benefit or Hospitality be viewed by the public as excessive?
• Is the expenditure in accordance with the LPLC’s approved annual budget?

5.11. Hospitality

The LPLC’s Committee members and Employees must ensure that when Hospitality is provided, they demonstrate professionalism in their conduct and uphold their responsibility to demonstrate a duty of care to those individuals to whom Hospitality is offered.

Catered functions

The LPLC may cater events for Employees and members of the Committee. This may include meeting with external representatives, presentations and training sessions.

Employees organising an event should consider the following matters when determining whether the LPLC should pay for catering:

• whether the event will contribute to organisational objectives
• the duration of the event and/or whether it will fall across mealtimes
• whether catering the event would be consistent with community expectations of modest and prudent expenditure by public officials.

Where events are catered by the LPLC, catering should not be excessive and should be appropriate to the size and type event.

When Employees are arranging catering, they are encouraged to consider using a social benefit supplier.

Serving of alcohol

Alcohol may be supplied at events hosted by the LPLC.

The LPLC has obligations in relation to the provision of alcohol under the Occupational Health and Safety Act 2004 (Vic), the Liquor Control Reform Act 1998 and the Code. Any event where alcohol is served should not exceed two hours in duration, unless agreed with the Chief Executive Officer (for example the end of year celebration lunch) and should be held at a time which minimises the risk of Employees returning to work impaired by alcohol. The amount of alcohol provided should be limited to two standard drinks per person attending the event. Further, the provision of alcohol should be incidental to the overall level of Hospitality provided.

7.1. Reporting to Audit & Risk Committee

The General Counsel and Secretariat will report at least annually to the Audit and Risk Committee on the administration of the Policy, processes and the Register.

7.2. Breaches

Disciplinary action consistent with the relevant industrial instruments and legislation, including dismissal, may be taken where an individual fails to comply with the Policy.

Actions inconsistent with the Policy may constitute misconduct under the Public Administration Act 2004, which includes:

• breaches of the binding codes of conduct (e.g. the Codes of Conduct for Public Sector Employees or Directors); and
• individuals making improper use of their position,

and may in a serious case constitute criminal or corrupt behaviour.

Individuals who consider that Gifts, Benefits and Hospitality within the LPLC or conflicts of interest within the LPLC have not been declared or appropriately managed should notify their People Leader or the General Counsel and Secretariat. Individuals who believe they have observed corrupt conduct in their colleagues may also make a public interest disclosure or ‘whistleblower complaint’ directly to the Independent Broad-based Anti-corruption Commission. The LPLC will take decisive action, including possible disciplinary action, against individuals who discriminate against or victimise those who speak up in good faith.

7.3. Training & Communication

Training and communication are critical to implementing the Policy.

Management will provide induction training to Committee members, Employees, and Business associates as appropriate.

Ongoing training and communication will also be provided to these individuals at regular intervals.

Any changes to the Policy will be communicated to Employees and Business associates as appropriate through meetings or via email.

7.4. Review

The Policy will be reviewed by the General Counsel and Secretariat and the Chief Executive Officer at least every two years.

Any recommended changes are to be provided to the Audit and Risk Committee for review and recommendation for approval to the full Committee.

8.1. Related Policies

The Policy should be read in conjunction with other the LPLC policies and procedures, including but not limited to the:

• Fraud, Corruption and Other Losses Policy;
• Public Interest Disclosures Policy; and
• Gifts, Benefits and Hospitality Register.

8.2. External Sources of Obligations

The Policy is also supported by obligations under Commonwealth and State legislation, codes and accountabilities, including but not limited to:

• Code of Conduct for Victorian Public Sector Employees;
• Code of Conduct for Directors of Victorian Public Entities;
• Minimum Accountabilities for Managing Gifts, Benefits and Hospitality issued by the Victorian Public Sector Commission;
• Occupational Health and Safety Act 2004 (Vic);
• Public Administration Act 2004 (Vic); and
• Victorian Public Sectors Commission’s Gifts, Benefits and Hospitality Guide.

Completed form to be submitted to General Counsel and Secretariat for inclusion on the LPLC’s Gifts, Benefits and Hospitality register.