By Ozlem Yucel
Holiday parties can be a great way to boost employee morale – but, if not handled properly, they can also be a source of liability for employers. Below is an overview of the law surrounding employer liability in such scenarios and a checklist of measures that can be put in place to reduce legal exposure.
Employer Liability
As a general principle, an employer is liable for the actions of its employees at the workplace and in the course of their employment. Over the years, the definition of “workplace” and the “course of employment” has been expanded to include situations where employees are off-site and off-duty.
What that means is that employers are liable for the actions of their employees at work-related events, even if they take place outside of the office and work hours. Accordingly, employers must ensure that employees are provided a safe and harassment-free work environment during their events. If an employee or manager crosses the boundary of inappropriate conduct, and engages in harassing, discriminatory or violent behaviour, the employer could be held liable for those actions.
An employer’s liability could also extend beyond the work-related event. There are cases where employees have become inebriated at company events, continued to a pub after work, driven home drunk, and were ultimately involved in serious car accidents. Employers were partially liable for the employee’s injuries in such cases. That is because, under the law, employers are the “hosts” of the party – even if the employees continue the party after the work-related event. As hosts, employers have an obligation to ensure employees are safe. In these cases, the employers had failed to fulfill their obligation to keep their employees safe by introducing alcohol to them, without taking sufficient precautions to ensure that they returned home safely.
In short, an employer is liable for their employees at, and even after, work-related events that are outside of the office and work hours. Given this extensive exposure, how can employers protect themselves?
Minimizing Legal Exposure
Here are some measures that employers could take to minimize their legal exposure:
- Consider not permitting alcohol at the event. Over-consumption may lead to an unsafe work environment and the employer could be liable for any damages that flow from that environment.
- If alcohol will be consumed at the event:
- Put measures in place to limit consumption (for example, by providing a reasonable number of drink tickets);
- Ensure alcohol is served by licensed servers and have them monitor consumption;
- Offer employees a safe way home (by supplying taxi chits, transit passes or room bookings at a nearby hotel);
- Remind employees that it is important to not drink too much and to watch out for coworkers who are attempting to drink and drive; and
- Avoid pressuring employees to consume alcohol.
- Remind employees that their behaviour at these kinds of events are representative of the employer. As such, they should ensure their actions comply with policies and codes of conduct at all times.
Finally, if an employer receives a harassment complaint during or after the event, take it seriously. An employer’s liability may be compounded if complaints are not dealt with properly.
If you are looking for legal advice surrounding your holiday party or other work-related event, consult with a lawyer at Turnpenney Milne LLP today.
Please note that this blog post is not intended to constitute legal advice. If you require legal advice, consult with one of our lawyers so that they can advise you about your specific situation.