At this time of year, HR departments hoping that the Christmas party does not cause any inappropriate behaviour to arise. Businesses should understand that, despite such an event taking place out of office hours, it is legally considered an extension of the working environment and that they have the same duty of care towards their staff and can be held vicariously liable for any incidents that negatively affect any members of staff.
Businesses host a Christmas party for their staff as a thank you for all their hard work throughout the year. Having to ensure that good behaviour is maintained and there is no harassment of staff during the event has become more onerous with the enactment of the Worker Protection (Amendment of Equality Act 2010) Act 2023 effective in 2024. Under the Act, employers must be proactive about preventing sexual harassment, rather than just reacting to complaints after an incident has occurred. Employment Tribunal will have the power to increase compensation resulting from harassment at a Christmas party by up to 25 per cent if it finds that an employer has breached this duty.
Christmas parties provide an excellent opportunity for employees to unwind and informally celebrate with colleagues. However, employers must be proactive in addressing potential legal risks. The informal setting and alcohol consumption often leads to increased inappropriate social interaction among employees. Employers must consider all the potential legal risks. Should an issue arise and an employee is sufficiently upset to take the matter to the Employment Tribunal, it is highly likely that it will become public knowledge which may cause reputational damage that could have significant negative effect on the business.
It should be pointed out that it is not only employees that should control their behaviour, in the case of Bellman v Northampton Recruitment Limited the managing director, Mr. Major, launched a drunken tirade at staff towards the end of a Christmas party following where there had been a considerable consumption of alcohol. He lectured them that he was the boss and he can do anything he thinks is right. A member of staff, Mr Bellman, challenged his decisions, whereby Mr. Major, who did not like Mr. Bellman's comments, punched Mr. Bellman twice, knocking him unconscious and causing traumatic brain damage.
Mr. Bellman successfully sued the company, Northampton Recruitment, for being vicariously liable for the assault inflicted by Mr Major which was upheld by the court of appeal.
Regardless of how problematic a situation is, particularly if senior staff members are involved, it is better to face the issue as soon as possible. Therefore, it is advisable to re-enforce with staff before the event 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 there is any unacceptable conduct. had actually occurred in their normal working environment. Therefore, any grievance raised relating to behaviour at a Christmas party should be treated in line with the grievance policy or the Acas Code of Practice.
The relaxed attitude at a Christmas party has the potential for more than just inappropriate behaviour. Repeated gossip can have a negative impact. In the case of Nixon -v- Ross Coates Solicitors an employee resigned after learning about the gossip and rumours spread by the HR manager at the Christmas party which eventually resulted in a claim result in a successful claim for constructive dismissal.
The following factors should be considered before the office party to limit avoidable problems arising:
Guidance for all employees
Remind all employees including managers, of what is considered unacceptable behaviour and the consequences of breaching the guidance. This should be presented as measures to protect all employees.
Avoid work-related discussions
Warn that the Christmas party is not the place to discuss other employees, their performance, salary increases or promotions. Also, emphatically make it clear that gossip is not appropriate.
Alcohol Consumption
It is customary for there to be a free bar at a Christmas party, it may be wise to limit the amount of free alcohol by providing free alcohol until a certain time, following which the staff must pay for their own drinks. Any staff under 18 years old must not be allowed to consume alcohol.
Social Media
A policy should be created to prevent the potential for compromising photographs to be taken of any member of staff to prevent any unwelcome images being placed online.
Employer's liability insurance
As a precaution, ensure that all insurance policies are up-to-date before a company social event.
Include All
Extend an invitation to all, without pressurising employees who may not wish to attend. Include staff who may be on sick, maternity or any other type of leave do not assume that they are unable to attend. Ensure that there is food that is suitable for employees with specific dietary or religious requirements. Non-alcoholic drinks should be available for those who do not drink alcohol.
Christmas Gifts
A "secret Santa" gift opportunity that is often practised should be permitted, with a reminder that gifts should not be offensive and inappropriate humour that offends an employee could be regarded as harassment.
The Christmas party does not have to be a minefield, provided all attendees recognise that there are standards of behaviour that must be observed. Giambrone and Partners employment lawyers have extensive experience in dealing with contentious employment situations. If you would like to have more information on how to handle the Christmas party, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
