Employment & Pensions Blog: Navigating the risks of a work Christmas party

With the festive season fast approaching, businesses will be planning their work Christmas parties to thank staff for their hard work over the last year. Whilst the occasion is of course a happy one so colleagues can celebrate and enjoy themselves, it is important for both employers and employees to understand their respective obligations. 

HR Professionals and Employment Tribunals are unfortunately all too familiar with the possible aftermath of the Christmas party. Whether it is fighting, inappropriate comments, sexual harassment, or managers drunkenly promising pay rises that haven’t materialised – the Employment Tribunal has seen it all. To prevent any negative consequences, it is important for employers to understand their potential liability for what takes place, and for employees to understand the possible disciplinary consequences of their actions. 

Understanding your possible liability

Surprisingly there is still a common misconception that employers aren’t responsible for what happens at the Christmas party because it takes place outside the workplace, or outside working hours. In actual fact, as the Christmas party is a work event typically organised and paid for by the business, the employer is liable for their employees’ actions. In Bellman v Northampton Recruitment Ltd, a recruitment company was found vicariously liable for personal injury from the life changing injuries caused by a managing director punching an employee. Likewise, under the Equality Act 2010, an employer is liable for any acts of discrimination or harassment carried out by an employee during the course of their employment, which includes acts carried out at the Christmas party. 

Provided the acts are still carried out during the course of employment, an employer’s liability for the acts of their employees can extend beyond just the Christmas party itself. In Livesey v Parker Merchanting Ltd, an employee was sexually harassed by one of their colleagues in the car on the way home from the party, and the employer was found liable for the harassment. Likewise, in Gimson v Display By Design, two colleagues fighting while they were walking home from the party was again found to be sufficiently connected to their employment. In the Bellman v Northampton Recruitment Ltd case (above), the Christmas party was at a golf club, but the incident happened in a hotel bar after the party had ended, and the business was still found liable. 

Top tips to help employers manage any HR risks from the Christmas party: 

1. Planning the party: When planning the party, employers should bear in mind:
   
   1. They have an ongoing obligation to safeguard the health and safety of their employees at work events. This includes taking steps to ensure the party is in a safe environment that takes into account the increased health and safety risks associated with alcohol consumption.
       
   2. Whether due to personal beliefs, religion, racial or cultural background, not everyone celebrates Christmas. Employees should not be pressured to attend the Christmas party if it does not align with their beliefs or cultural background, nor should they be singled out for not attending.
       
   3. Employees may have dietary restrictions for religious, ethical, or health reasons, and failing to accommodate for these requirements can create a sense of exclusion that results in grievances or Tribunal claims. Likewise, employers should ensure that there are non-alcoholic drink options available for those who either do not drink alcohol, or who do not want to drink too much. 
       
   4. Ensure your public liability and employee liability insurance is up to date and insures the business against the possible risks from the party. 
       
2. Remind employees what is expected of them: The possibility of misconduct and inappropriate things being said or done by employees increases markedly at work social events, particularly where alcohol is being consumed. Employees should be reminded that it is a work event, they are representing the company, and they must conduct themselves appropriately. All of the terms and conditions of their employment, as well as all workplace policies, continue to apply and there could be possible disciplinary action for any breaches.
    
3. Remember the new duty to prevent sexual harassment: Too many grievances and Employment Tribunal claims involve issues of sexual harassment at work events. On 26 October 2024 a new duty was introduced that requires employers to take reasonable steps to prevent their employees being sexually harassed during the course of their employment. This includes taking reasonable steps to prevent it happening at work events, like the Christmas party. Employers should have an effective anti-harassment policy in place, carry out sexual harassment risk assessments that includes possible risks at work social events, engage with staff over the issue, and foster an environment that encourages reporting of sexual harassment. 

If you require any further assistance or support in connection with your Christmas party, please contact a member of the Employment team.