Oxfam did not ban its staff from using prostitutes because it would be "impractical" and infringe their civil liberties.
In the staff training manual published on the charity's website, they say that they would "strongly discourage" that their workers in the field pay for sex, but do not go as far as a total ban.
Oxfam has found itself at the centre of a growing furore after it emerged that an investigation found its aid workers had been using prostitutes, some of whom were allegedly underage, in Haiti, where the practice is illegal.
Since initial allegations emerged whistleblowers have come forward to allege sex for aid and the abuse of young people in charity shops in Britain.
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It has now emerged that whilst frowning upon the use of prostitutes, they did not entirely rule it out.
In the frequently asked questioned section of the staff handbook, published in 2006, the charity answers the question: "If Oxfam takes such a strong stance on gender equity, why hasn't it banned the use of sex workers?"
The handbook continued: "No, we haven't banned the use of prostitutes, but we strongly discourage it. We don't ban it, because we cannot infringe on people's civil liberties, and we know it would be impractical to think we could enforce a total ban. We also, in a number of countries, support partner organisations that work with sex workers to ensure their basic rights; so we are definitely not in any position to tell sex workers how to live their lives."
Oxfam has issued an "unreserved apology" to the UK Government, donors, supporters and the people of Haiti over its handling of incidents including the alleged use of prostitutes by workers, in the earthquake-hit country in 2011.
Four members of Oxfam staff were dismissed and three, including the country director Roland van Hauwermeiren, resigned before the end of the 2011 investigation.
The charity has since admitted that it knew about concerns over Van Hauwermeiren and another man using prostitutes when they worked in Chad before they were given senior roles in Haiti.
A Oxfam spokesman said that the guidance from 2006 was outdated and "our code of conduct forbids Oxfam staff paying for sex". They were currently unable to say when the guidance had changed.