POTENTIALLY, office Christmas parties can expose employers to liability for the actions of their employees to one another and third parties.

Even if the event is unofficial, some risk of liability remains, particularly if the business picks up the tab through employees’ expenses claims.

Consequently, employers should consider whether it is necessary to sanction departmental parties and exercise a bit more control. And, if the merriment continues beyond the end of the function, the distinction between what is and is not “outside of work” can become blurred, so setting a finish time and arranging transport to take staff home is recommended.

Who to invite to the office Christmas party is another potential banana skin. All staff should be invited, including part-time and full-time employees, casual workers and agency workers.

It’s also advisable to consider inviting absent employees, such as staff on maternity leave, although the party is not an opportunity to coerce an employee into discussing their return to work.

Unfortunately, where alcohol is present the risks of potential misconduct increase. Although staff training on acceptable behaviour and discrimination is relevant all year round, it takes on added importance in situations such as office Christmas parties.

An internal memo ahead of the party reminding staff of their responsibilities demonstrates that steps have been taken to prevent harassment and violent or abusive behaviour. Should allegations arise from a Christmas party, employers should: Be sympathetic to the alleged victim, take the matter seriously, ask for witnesses to come forward, consider outsourcing the investigation to an external HR consultant/solicitor, dissuade members of staff from gossiping openly about it.

Employers should not: ignore the complaint or brush it off as ‘someone being over-sensitive’, automatically assume guilt before a thorough investigation, appoint a manager who attended the party to conduct the investigation, appoint a manager to investigate who is close to either party, or has been subjected to gossip, as impartiality is vital.

Case law has shown that employers will be liable for their employees’ actions – even when they are under the influence of alcohol – if they are acting in the course of business. A sobering thought indeed!

  • This Legal Expert column has been provided in conjunction with Jacksons Law Firm and the Law Society. Paul Clark, is partner and head of employment at Jacksons Law Firm in Teesside.