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Posted on 2 December 2014

Mulled wine, mistletoe and a P45

Posted in Advice

Read time: 3 minutes

With the festive season upon us, many employees and employers will be planning office parties. Employees may assume that on such occasions, the normal rules of the workplace do not apply - particularly when the party is out of office hours and takes place in away from the office.

In most circumstances, what employees get up to outside work is their own choice and, in general, nothing to do with their employer, the law recognises that off duty misconduct can become the employer's legitimate concern, if a clear link can be established between the business interests of the employer and the actions of employees. History shows many a promising career has reached an abrupt halt after ill-advised, wine fuelled antics - whatever the season.

Most of the cases which reach the employment tribunal concerning work-related social events involve alcohol to a greater extent than the employer feels is acceptable. Even at an office party, the over consumption of alcohol can lead to fighting, sexual harassment or other issues that may potentially embarrass both the protagonists and their employer.

Whilst it may be unfair to expect employees at an office party to remain entirely sober, especially if the employer is providing the drinks, employers are entitled to take action and exert some control if employees overstep the mark and especially if their actions are likely to have an adverse effect on the employer's reputation and business. This is particularly so where clients are also present.

Examples of sexual harassment (allegedly) abound in connection with office parties and generally conduct which is unreasonable and offensive cannot be excused on the basis that it took place at an office party. Employers investigating complaints of harassment must be careful not to assume that, because alcohol had been consumed or the events took place in a social environment, there was blame on both sides because a failure to deal effectively with complaints of harassment can in itself result in sex discrimination or constructive dismissal claims.

The traditional view has been that, the employer can only be held liable for harassment by another employee if that employee was acting "in the course of employment". In the context of office parties, this may be questionable as such events usually occur outside working hours and often away from the workplace. However, the Court of Appeal has held that employers are liable for harassment which occurs in circumstances over which they have control - irrespective of whether the harasser is acting in the course of employment or is even employed by the employer - unless they can show that they took all reasonable steps to prevent it.

This means that it is possible that employers will be held liable for any acts of harassment that occurred during office parties and even if committed by third parties such as hired entertainers. In other words, think very carefully before you rush to book any entertainment that might offend - a risqué comedian isn't always everyone's cup of tea!

For more information contact Liz Spooner directly on 0113 320 5000 or @email