Office Christmas parties can be a great boost for morale, but employers should be aware of potential risks such as sexual harassment, alcohol-fuelled brawls, religious discrimination and post-party absenteeism.

This practical guide will help ensure a trouble-free office party. We examine what steps employers are required to take to prevent sexual harassment, along with practical steps to safeguard everyone throughout the office celebration.

Duty to prevent sexual harassment

Despite its festive atmosphere, an office Christmas party is, most likely, legally an extension of the office environment even if it is held offsite and outside working hours. This means employers are likely to be vicariously liable for acts of harassment, discrimination, assault or other unwanted conduct carried out by their employees, and workers can be personally liable too.

Whilst claims can arise in respect of any protected characteristic, since October 2024 employers have a positive duty to take reasonable steps to prevent sexual harassment. Failure to do so can result in compensation from successful tribunal claims being subject to a 25% uplift and potential regulatory enforcement action from the Equalities and Human Rights Commission (EHRC). The greatest risk for employers though is often reputational damage.

This means that the Christmas party should be included in the employers’ sexual harassment prevention risk assessment processes. Consider what factors might increase the likelihood of sexual harassment from co-workers and third parties. Many of these are highlighted in this guide as we take you through office celebrations below, but also consider whether:

  • there have been incidents during past celebrations from which lessons can be learned;
  • sexual harassment prevention training and policies are up to date;
  • workers have clear reporting channels if they experience or witness inappropriate behaviour; and
  • the mix of attendees creates imbalances, such as mostly men being present or situations where senior and junior colleagues are socialising together.

Senior colleagues should be encouraged to role-model good behaviour and be ‘active bystanders’ who take action to prevent or address inappropriate behaviour,

If any such allegations are made during or after the event, employers should follow their usual process and ensure that any complaint is investigated thoroughly.

The invitation

Do not insist that all staff attend the office Christmas party. Christmas is a Christian holiday, so do not pressure someone to attend if they do not want to on religious grounds. If the event is out of hours, remember also that some people have family responsibilities that may prevent them coming.

Decorating the office

It is a common misconception that Christmas decorations breach health and safety rules. As long as a proper risk assessment is carried out looking at where and how decorations are sited - particularly those that could pose potential fire hazards - you will not normally fall foul of health and safety rules. However, your insurance may not cover damage caused by untested electrical equipment such as faulty tree lights.

The Equality Act does not ban traditional customs under its religious discrimination provisions. Most Christmas decorations such as tinsel, lights and trees are secular and not inherently religious, so it would be difficult to argue that they could cause offence to non-Christians.

Secret Santa

If you are running a 'Secret Santa' gift exchange, make sure staff are told that gifts should be inoffensive. Some gifts, for example lingerie that is hilarious to the giver and onlookers but not to the recipient, have sparked complaints in the past.

Party policies

The office Christmas party is a work-related activity, so make sure that you set the boundaries of acceptable behaviour while acknowledging that employees will want to let their hair down.

Provide clear written guidance to all employees about acceptable standards of behaviour at work-related social events, equal opportunities and preventing harassment, as well as the disciplinary sanctions that could result from breaches of the rules. Make it clear that fighting, excessive alcohol consumption, the use of illegal drugs, inappropriate behaviour, and remarks and comments that are sexual or relate to a protected characteristic will not be tolerated.

While party policies may seem Scrooge-like, they are a valuable precaution for employers and can be one factor in helping to demonstrate that reasonable action has been taken to protect employees.

Do not discipline any employees at the party itself. Send them home if necessary and deal with the incident when you are back at the workplace - and sober.

The venue

If the employer is hiring event services at their own premises or has booked a function at an external venue, consider risks presented by third parties. This includes workers engaged by the event service provider or the venue. The employer should ensure expected standards of behaviour are communicated to third parties. The employer should also ensure that its own workers treat third parties appropriately too. Checks such as the venue’s adherence to modern slavery rules are also advised.

Alcohol consumption

While you may want to provide a number of celebratory drinks for employees to reward them for their hard work over the year, remember that maintaining a free bar throughout the evening will encourage excessive alcohol intake. Many employers therefore now restrict the amount of free alcohol available and are also prepared to ask individuals to take it easy if they appear the worse for wear. Making plenty of food available early on and serving a meal may also assist. Putting on entertainment, such as a disco, also prevents employees from simply propping up the bar.

Finally, be respectful of employees who, for whatever reason, do not drink. Ensure a plentiful supply of alcohol-free alternatives and lots of water. Keep an eye out too for any younger members of staff – employers cannot allow under-18s to drink.

Catering

Remember that employees with certain religious beliefs may be vegetarian or unable to eat certain foods. Do not leave it to chance - ask beforehand about any special dietary requirements so that these can be accommodated.

Social media

Remind staff of your social media policy, and the consequences of posting pictures online that may bring the company into disrepute or infringe the rights to privacy of colleagues. With smartphones in hand and the popularity of X, Facebook and Instagram, it is important that employees understand the possible consequences of breaching the policy.

Criminal offences and drugs

It is an offence for an employer to knowingly permit or even to ignore the use, production or supply of any controlled drugs taking place on their premises. In addition, employees who are convicted of criminal offences involving drugs, sexual misconduct or drink driving may also damage their employer's reputation or undermine trust and confidence. In these cases you may well be justified in taking disciplinary action against the employee.

Making promises

Alcohol can loosen tongues so managers should avoid conversations about performance, promotion, salary or career prospects.

In one case an employee claimed his boss had promised him a higher salary "in due course" during a chat at the Christmas party. His pay remained static so he resigned and claimed constructive dismissal. The employer won the case because the nature of the promise was vague and uncertain. However, a promise made at a Christmas party is still a promise - even if the individual manager may not remember the conversation.

Getting home/overnight stays

Consider how your employees will get home after the party. Issue advice in advance about not drinking and driving - an employer may be held responsible for its employee driving home from an office party. Think also about providing transport home, such as laying on coaches to leave at set times during and at the end of the event, or ending the event before public transport stops. At the very least encourage employees to think about how they will get home, provide phone numbers for local registered cab companies and suggest employees check the time of their last train home. Even if workers are privately lift-sharing this may also be an extension of the workplace so appropriate behaviour should be maintained. If the employer is arranging overnight accommodation, it should be safe and appropriate.

The morning after

Be clear about your expectations regarding absence the next day - but don't expect miracles from those who do turn up for work. Ensure that all staff know the extent to which you will be lenient about coming to work late and that, if your expectations are breached, disciplinary action may be taken.

Be careful: a past history of festive tolerance, particularly where alcohol consumption at lunchtime is concerned, could be used as evidence that disciplinary action against an individual is unfair.

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