Managing the Staff Christmas Party

As the festive season approaches, HR departments are crossing their fingers in the hope that the combination of alcohol and a Christmas party does not cause any inappropriate behaviour to arise. Employers should recognise that despite the event being out of office hours it is legally considered an extension of the working environment and that they have a duty of care towards their staff and can be held vicariously liable for any incidents.

A large number of companies host a Christmas party for their staff as a thank you for all their hard work throughout the year, and employers must remember to invite all staff. Ensuring that good behaviour is maintained and there is no harassment of staff during the course of the event has become more onerous with the enactment of the Worker Protection (Amendment of Equality Act 2010) Act 2023. Under the Act, employers must protect their staff from harassment and the Employment Tribunal will have the power to increase compensation by up to 25 per cent if it finds that an employer has breached this duty. 

Daniel Theron, a partner, commented “Christmas parties provide an excellent opportunity for employees to unwind and celebrate, employers must be proactive in addressing potential legal risks. The informal setting and alcohol consumption may lead to increased inappropriate social interaction among employees.” Daniel further commented “Employers must consider the potential legal risks. Should an issue arise, the cost to a business can have a considerable impact. If an employee is sufficiently upset and takes the matter to the Employment Tribunal, it may then become public knowledge and the reputational damage can last a very long time. Regardless of how potentially problematic a situation is, particularly if senior staff members are involved, it is better to face the issue as soon as possible. It is therefore advisable to ensure all staff are aware that they must act as they would in the workplace, and if not, they will be subject to the standard disciplinary procedures that would be applied if the conduct had occurred in the normal working environment. Likewise, any grievance raised relating to behaviour at a Christmas party should be treated in the same manner and in line with the grievance policy or the Acas Code of Practice. Failure to deal with such matters could lead to risks for employers.” 

The Christmas party has the potential for more than just inappropriate behaviour, alcohol-fuelled comments can create more than just the consequences of over-indulgence in alcohol. Repeated gossip may have a knock-on effect resulting in an employee resigning and claiming constructive dismissal, as in the case of Nixon –v- Ross Coates Solicitors, when the claimant became pregnant following an office party. Gossip and rumours, allegedly spread by the HR manager, made the claimant uncomfortable and she requested a move to a different office, which was rejected. She raised a grievance and refused to return to the office where she suffered embarrassment and eventually initiated a claim in the Employment Tribunal following her resignation. The Employment Appeal Tribunal subsequently found that she had been constructively dismissed and found there to have been sex discrimination. 

Another area of risk is that senior officers or directors of a business may themselves compromise the company by making promises of increased salaries or promotions that are unrealistic and not kept. 

The following factors should be considered before the office party to limit avoidable problems arising:

Guidance for all employees

Set boundaries for all employees including senior managers and directors and remind them of what is considered unacceptable behaviour and the consequences of breaching the guidance. Whilst this may seem to pour cold water on what should be a good experience it can be presented as measures to protect all employees.

Avoid work-related discussions

Warn that the Christmas party is not the place to discuss performance, salary increases or promotions. Also, gossip is not appropriate.

Vicarious liability

The employers’ responsibilities to staff legally extend to the Christmas party notwithstanding the fact it is held outside working hours and held in another venue. Should a difficult situation arise and an employee is acting unreasonably, they should be asked to leave and not be disciplined at the event. Any allegations should prompt the company’s usual disciplinary and grievance procedures. An investigation should take place and depending on the findings appropriate action should be taken.

Alcohol Consumption

It is customary for there to be a free bar at a Christmas party, however, it may be a better idea to limit the amount of free alcohol by having a cut-off time after which the staff must pay for their own drinks which may help to reduce the drinking. Any staff under 18 years old must not be allowed to consume alcohol.

Social Media

A social media policy should be invoked which prevents compromising photo evidence that brings the company into disrepute finding its way online.

Employer’s liability insurance

Make sure all insurance policies are up-to-date before a company social event.

Be inclusive

Extend an invitation to all without pressurising employees who may not wish to attend. That includes staff who may be on sick, maternity or any other type of leave. Ensure that there is food that is suitable for employees with specific dietary or religious requirements. Furthermore, a selection of non-alcoholic drinks should be available for those who do not drink alcohol.

Absence

If the party is to take place on a mid-week day, make it clear that employees are expected to attend work the following day unless they have booked leave or unless there is an alternative policy in place. Any such policy should be communicated in advance to all employees.

The Christmas party does not have to be a minefield, provided all attendees recognise that there are standards of behaviour that must be observed.

Secret Santa

The common practice of initiating a Secret Santa gift opportunity should be accompanied by the reminder that gifts should not be offensive and inappropriate humour could amount to harassment.

Daniel Theron, a partner, advises on employment law, litigation in family law, cross-border debt recovery and defamation. Daniel has considerable expertise in contentious cross-border family law, including complex financial arrangements and enjoys a high level of success in both debt recovery and employment law. Daniel is conscious of the impacts of litigation and advocates Alternative Dispute Resolution wherever possible, including mediation.

Daniel enjoys a reputation of being meticulous in his analysis of the merits of a matter and tenacious in his pursuit of a successful outcome for clients. He frequently impressively navigates challenging situations culminating in an excellent level of achievement, in excess of all expectations.

If you would like to know more about the legal aspects of the Christmas party contact us at clientservices@giambronelaw.com or please click here.