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As the holiday season approaches, businesses around Australia are preparing for their annual Christmas parties. Whilst these events offer a great opportunity for teams to celebrate and bond, they can also create an environment where Management Liability and Employment Practices claims might arise.
Though informal, and generally held after hours, Christmas parties are still considered company-sponsored events. This means that employment laws, including those governing workplace conduct, harassment, discrimination and health and safety still apply.
Alcohol, the relaxed atmosphere, and the scheduling of these events after hours, can sometimes lead to behaviours not generally accepted in the workplace being witnessed and lapses in judgement occurring. This can in turn result in unsafe or inappropriate situations, exposing both employees and employers to potential risks and liabilities.
Some common claims arising from such events include allegations of inappropriate behaviour, harassment or discrimination, particularly if employees feel uncomfortable or targeted. Additionally, accidents that occur at or after the event may lead to claims related to alleged health and safety violations, with potential liability falling on the business.
What can you do to protect your business and your employees?
1. Set Clear Expectations
Have comprehensive and up-to-date policies in place dealing with matters such as appropriate workplace conduct and the use of social media. In the lead up to your Christmas party, remind employees of these policies and of your code of conduct so that expectations are clear and front-of-mind.
2. Responsible Service of Alcohol
If alcohol is being served, ensure that it is done responsibly, that there is plenty of food and non-alcoholic drinks on offer, and that there are one or two senior people in attendance who can work with venue staff to proactively address any foreseeable issues before they escalate. Also ensure that the function has an appropriate cut off time and that employees are made aware of when that is.
3. Ensure employees can get home safely and with relative ease
If an employee is injured on their way home from a Christmas party, it could foreseeably give rise to a potential workers compensation claim against the employer. Providing or organising safe transportation options, or simply ensuring there are safe and easily accessible options available, can greatly reduce the chance of accidents occurring after the party. This should also be front-of-mind when selecting a venue in the first place.
By taking these steps, businesses and their employees can enjoy the holiday season whilst minimising potential risks and liabilities and safeguarding reputation.
Unfortunately, even with sound risk management and preventative measures in place, eliminating all risk is impossible. If any incidents occur or if an employee lodges a complaint or reports an incident related to your Christmas party, it is essential to handle the complaint promptly, fairly, and in line with applicable laws and company policies.
From an insurance perspective, if you are an employer, we recommend you consider Management Liability insurance for your business. A Management Liability insurance policy can provide individual directors, officers and managers, as well as the business itself, with protection against the financial consequences of claims by employees related to employment practices and workplace conduct (e.g. claims of harassment, discrimination, bullying, wrongful termination, etc).
Author: Olivia Taylor
Please contact one of our advisers if you would like further information on this article.
