Diwal gifting with the principal employer logo - Is there any compliance risk involved in this?

I need a suggestion on the gifting policy. We plan to give Diwali gift boxes to all our employees (including outsourced members) with the principal employer logo on them. Is there any compliance risk involved in this?

Hi, it is just gift boxes and no compliance risk involved.

What compliance risk are you anticipating?

Plan for Diwali Gift Boxes

Planning to give Diwali gift boxes to all your employees, including outsourced members, is a good decision. However, using the logo of the principal employer is not advisable and may be illegal. Obtaining consent from the principal employer is essential in this matter. You should use your own logo on the gifts and mention the site of the principal employer on them. This approach would address your concerns effectively.

It's very much normal and a welcome gesture on the part of the PE to distribute gifts during festivals, mostly during the Diwali season, generally in the form of sweets or dry fruit boxes. There is no risk whatsoever in printing the PE's logo on the boxes. This practice has been ongoing for many years now, and no risk is involved. The PE regularly distributes such boxes to their regular employees, and the same is extended to contract employees too. If so, what kind of risk can one expect by doing so? We have several such PE clients doing this for many years now.

The risk comes from claims by contract workers that this is proof they are part of the staff of the principal employer (PE) and that there is no distinction between them and direct permanent employees.

However, that cannot be the main argument in a court or investigation. If there is no other evidence, then just a Diwali gift with a name and logo is not evidence of a direct relationship between PE and contract workers. However, it can be 'collaborative' evidence if there is other evidence of such a direct relationship.

Further, I do not think that the boxes are given only to workers. So, keep evidence that it is distributed to all: employees, clients, customers, support services, vendors, security staff, etc. That will be a good idea.