Keeping work Christmas parties safe from legal and HR issues

With workers looking forward to the annual Christmas party to eat, drink and be merry, it is important to remember that HR issues can arise even though the party may not be at the workplace. Mixing alcohol, a party atmosphere and diverse personalities does not always make for an evening of measured fun and can leave those in HR the lasting effects of cocktails and hangovers.

Inclusive work Christmas parties

Employers must treat all staff equally and include them in such events, regardless of whether they celebrate Christmas. This is a work event, like any other workplace event, thus employees should be invited across the board, including those working from home, or on leave (sickness absence/family-related leave/maternity).

It is important to enquire about staff dietary requirements ahead of the event to ensure you can accommodate them appropriately. Remember, not all staff celebrate Christmas or drink alcohol, so make appropriate arrangements to cater for everyone.

Reminder of company rules and policies

It is important to remember, that whilst Christmas parties are events to enjoy and reward your staff, they are an extension of the workplace and employers’ duties and obligations will apply. Handle any related events or issues in line with the company grievance and disciplinary procedures. Consistency is key and expectations should be the same, irrespective of seniority.

Advise staff in advance about the dress code policy and standards of acceptable behaviour, considering any cultural or religious considerations. With a view to preventing vicarious liability, remember that there are often misconceptions around issues arising from Christmas parties, and employers may become liable for incidents at such events, therefore reminding staff of the relevant workplace policies, including the company social media policy, anti-bullying and harassment, grievance and disciplinary procedures is advised.

Examples of incidents may include inappropriate/unprofessional conduct/comments, behaviour/comments of a sexual nature, and abusive and/or aggressive behaviour.

Livesey -v- Parker Merchanting Limited

This case focused on defining the remit of ‘course of employment’. The employment tribunal in the first instance held that sexual harassment that occurred during a car journey home from a work Christmas party was not within the course of employment therefore the employer was not vicariously liable. However, the Employment Appeal Tribunal overturned this finding and held that the employer was liable as the harassment in this case amounted to a continuing course of conduct.

From 26 October 2024, The Worker Protection (Amendment of Equality Act 2010) Act 2023 places a legal obligation on employers to take ‘reasonable steps’ to prevent their employees from experiencing sexual harassment.

Under the new law, the employment tribunal can now increase compensation awards for sexual harassment claims by up to 25% if it finds:

• sexual harassment has taken place
• the employer failed to take reasonable steps to prevent sexual harassment

Employers could consider issuing a memo reminding staff of the expected conduct and behaviour and refer to the relevant policies.

Alcohol consumption

Providing a free bar throughout the evening may encourage excessive alcohol consumption. If alcohol is provided, ensure staff are reminded to consume responsibly and comply with drinking laws. Employers may decide to arrange taxis/transport for staff to ensure they arrive home safely.

Investigate and address any inappropriate behaviour promptly and appropriately in line with your company procedures. In some cases, alcohol-related behaviour may result in potential gross misconduct action, which may result in dismissal without notice.

Williams and others -v- Whitbread Beer Company

In this case, three claimants were work colleagues who attended a party where drinks were provided by their employer. They became drunk, which resulted in an incident of personal abuse aimed at a superior and violent conduct. As a result of their actions while drunk, the three claimants were dismissed. The Court of Appeal approved the employment tribunal’s decision that the claimants were unfairly dismissed as the incidents had taken place outside working hours and in circumstances when a free bar had been provided by the employer. The decision to dismiss was therefore held to be outside the band of reasonable responses.

Bellman v Northampton Recruitment Limited

An employer was held to be vicariously liable for its Managing Director’s assault on Mr Bell when drinking alcohol in a hotel bar after the work Christmas party. Mr Bell claimed the employer was vicariously liable for the injuries sustained to his skull from the Managing Director’s assault. The case acknowledged the situation was potentially unusual, however in the circumstances it was held there was a connection between the Managing Director’s role/seniority and the assault, thus it was held the employer was vicariously liable.

Social media policy

This is a good time to review and distribute your policy. Often staff will take photos and share them on social media, such as Linkedin, Facebook, Snapchat, and Instagram, without considering the potential implications. This behaviour may raise issues or grievances. Also, the employer may be identified with a potential risk of reputational damage.

Do not discuss work matters/pay

Often alcohol can contribute to discussions taking place relating to performance, promotion and pay. It is important managers are advised to avoid such discussions to prevent unintentional promises from being relied on.

Remind staff that while this is a time to relax and enjoy, they must avoid gossip or discussions that could lead to complaints or issues.

Employers can issue a memo to remind staff of the expected conduct and behaviour and refer to the relevant policies. Let us know if you require assistance with this or wish to discuss this matter further.

Top tips for employers to consider ahead of work Christmas parties

1. Remind employees of your policies and expectations.
2. Communicate dress code rules and expectations for professional behaviour at work-related events.
3. To help regulate alcohol consumption, plan so that an employee has a certain number of drinks on the company and once they run out, they will have to buy their own drinks. Also, ensure that non-alcoholic drinks are available.
4. Arrange transport to ensure employees get home safely.
5. Be aware of the potential risks of any information or photos posted on social media may be regarded as discrimination or bullying behaviour and could potentially damage the company’s reputation and/or business relationships. Remind staff of your social media policies and ask them to consider what they are posting/sharing.
6. Make sure your employers’ liability insurance and directors’ and officers’ insurance are up-to-date.

Employers can easily avoid many major legal and HR issues arising from work Christmas parties. Taking pre-emptive action ensures you are best prepared as an employer if issues should arise.

Please note that this information is for general guidance only and should not substitute professional legal advice. If you have specific concerns, we recommend consulting one of our legal experts.