Risk and Insurance Considerations for the Festive Season

The annual Christmas party can be a great way for your team to have a great time and let their hair down. But inappropriate behaviour can leave you with a headache. As an employer, you can be ‘vicariously’ liable for your employee’s actions and comments at a Christmas party.¹

According to research:²

• 1 in 5 employees admitted to being involved in a heated argument or physical altercation with a colleague at a Christmas party.
• 10% admitted to having behaved inappropriately or regretted something they had said or done, with a similar percentage having been or worked alongside someone who had been sacked or suspended from work following an incident.
• 4% say they have been the subject of disciplinary action from their HR team as a result of their inappropriate behaviour.
• More than one in 10 workers said they would deliberately not attend a Christmas party due to their colleagues’ behaviour.
• Over 60% stated they would purposefully be trying to not drink too much because they are afraid they will do something they might later end up regretting.

So, what can you do to avoid a serious incident impacting your holiday party and your company’s reputation?

What Steps can you Take to Safeguard Your Staff and Your Reputation?

• Set clear standards of behaviour.  In the weeks leading up to your party or event, make it clear to your employees what will and will not be tolerated and link this to the employee handbook or alcohol and drugs policy.
• Set a dress code that is fitting with the type of event you are holding.
• Remind your staff of your policies around violence, harassment and discrimination and the consequences of failing to follow them.
• If you’re having a party, then consider whether a free bar is a good idea.  Unlimited drinking will inevitably result in problems later in the evening.  Offering staff a set number of free drinks or limiting the bar tab may help to keep control of the quantity of alcohol being consumed.
• Provision of food can help to mitigate the effects of alcohol, so whilst a sit-down meal may not be an option, ensuring there is a sufficient amount of food available can often help.
• Be inclusive to all and respect individuals’ choices.  If you have staff with specific dietary needs, or who choose not to drink, then make sure you cater for them as well.
• Hold your event at a neutral venue which is accessible and safe to travel to.  Consider whether you can organise transport to and from the venue, particularly if it is out of town or in a remote location and / or whether you should provide overnight accommodation.  This will not only ensure that your staff aren’t walking distances alone or whilst intoxicated, but it will also eliminate any temptation to drive.

What are the Insurance Considerations?

• Whatever you decide to do, carry out a risk assessment.
• Check with your insurance provider that any “high-risk” activities are noted.
• Only work with venues that ensure the correct safety measures are in place and hold appropriate insurances.
• Consider any legal risks including recent case law. Depending on the situation, it’s possible that a claim could be brought against a director under the Management Liability policy; speak to your broker about claim scenarios and how this policy would respond.
• Speak to your broker about the Employers Liability risks of your event, to make sure cover is in place.

Get in touch with our experts to discuss your employers liability and management liability cover.

Sources:

1. morrlaw.com/employment-law-employer/vicarious-liability 
2. igniyte.co.uk/2022-work-christmas-parties