As the festive season approaches, many employers are rethinking their approach to the traditional office Christmas party. Once synonymous with free-flowing alcohol, these events are increasingly being rebranded as "sober" or activity-based celebrations, reflecting a broader cultural shift. 21% of Christmas parties in 2024 will be alcohol-free, according to new data from event booking platform Togather. But why the change? Beyond the social and health benefits of reducing alcohol consumption (advocated to a large extent by Gen Z), employers are acutely aware of the potential legal risks that alcohol-fuelled events can bring.
A Festive Legal Minefield
Office parties are an extension of the workplace, meaning employers retain both vicarious liability for the actions of their staff, as well as a duty of care to their employees during these events. While office Christmas parties can be a valuable tool for building morale, alcohol often lowers inhibitions and can lead to inappropriate behaviour, including harassment and discrimination. Such incidents can expose employers to legal claims, particularly where they have failed to take proactive steps to mitigate risks.
The new Worker Protection (Amendment of Equality Act) Act 2023, which came into force on 26 October 2024, in time for the start of the Christmas party season, has raised the stakes considerably. Employers now have a positive obligation to take 'reasonable steps' to prevent sexual harassment, both in the workplace and at work-related events. The duty also extends to sexual harassment by third parties. Companies are required to anticipate scenarios when their workers may be subject to sexual harassment in the course of their employment and take pre-emptive action to prevent the harassment from taking place. Failure to do so could mean any compensation awarded at a subsequent employment tribunal trial could be uplifted by up to 25% and the Equality and Human Rights Commission can take enforcement action against an employer who fails to take reasonable steps — possible scenarios which might sober up even the liveliest festive cheer.
Balancing Festive Cheer with Legal Compliance
To address these risks, many employers are opting for alternatives to the traditional boozy celebration. Activity-based events, such as escape rooms, team dinners, or comedy nights, provide a festive atmosphere without the complications alcohol can bring. These alternatives also help create an inclusive environment for employees who may not drink for religious or personal reasons.
Employers now have a positive obligation to take 'reasonable steps' to prevent sexual harassmen
Of course, a sober party is not a fool proof solution. Employers must still take proactive steps to meet their legal obligations, such as:
- Putting in place clear policies and guidelines: remind employees that expected standards of workplace behaviour extend to work parties.
- Training: Ensure all staff, particularly managers, understand the importance of respectful and inclusive conduct.
- Incident Management and feedback mechanisms: Have a plan in place to respond to any incidents, including clear reporting channels and appropriate follow-up action.
While some may grieve the decline of the raucous Christmas party, this shift is less about being a Grinch and more about creating a safer, more inclusive environment. Plus, let's be honest, as lawyers, we're always going to suggest celebrating within the boundaries of the law. After all, nobody wants their party to end with disciplinary action... or worse, a claim form!
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