Are last orders being called on the company Christmas party?

The work Christmas party as we know it is thought to have been born during the Victorian times – a paternalistic way for employers to give something back to their workers and show appreciation for their efforts over the course of that year.

Over time, particularly following World War II, Christmas parties became more widespread and elaborate, turning into the alcohol-fuelled morale boosters that were a common fixture of corporate culture until the Covid pandemic forced a shift to virtual events over Zoom or Teams.

Since then, social norms and expectations have evolved. Millennials and Gen Z who make up an increasing proportion of the workforce place greater emphasis on work-life balance, which can sometimes result in a preference to minimise mixing work and pleasure. There also tends to be greater health consciousness and social awareness among these cohorts, meaning a traditional “booze up” with colleagues – and the accompanying hangover – isn’t as appealing. 

Combined with amendments to the law, this has prompted changes to how employers approach workplace Christmas celebrations – with some holding dry events or even avoiding them all together. 

Under employment law, the employer is vicariously liable for incidents that occur in the course of employment – and Christmas parties have long been viewed as an extension of that.

New protections from sexual harassment were introduced just in time for last year’s Christmas party season, imposing a proactive duty on employers to take reasonable steps to prevent sexual harassment by colleagues and third parties, such as customers. This is a marked shift from reactive responses to actively assessing risk. It’s reasonable to expect an employer to recognise that a Christmas party where alcohol is being supplied is a hot bed of risk and manage that risk accordingly.

This can be a minefield for HR teams who, instead of enjoying what should be their night out too, regularly end up policing events and dealing with the fallout of any incidents over Christmas and New Year. 

In addition to the employee Christmas party, it is common for employers to organise team-to-team events with their clients and customers. The power dynamic at these occasions can be quite different and could in fact pose an even bigger risk if not managed properly.

Client events are often something HR will not have been given wind of until an unsavoury incident occurs. The fact that the incident involves a client rather than a colleague does not let the employer off the hook. A triple whammy for the employer depending on who is the victim – loss of a business account, a tribunal claim, and damage to reputation could all ensue.

There are countless employment tribunals involving complaints arising from behaviour that has occurred at work-related Christmas parties, which serve as reminders to employers of the importance of investing in proper training, reminding attendees of expectations around proper conduct, and setting parameters on alcohol consumption in advance of any organised events.

For most companies, the Christmas party is landmark event and an important part of their culture, where colleagues bond, let off steam, and celebrate a year of hard work. While many would view cancelling the Christmas party as throwing the baby out with the bath water, it’s clear that workplace Christmas parties need to evolve in line with changing expectations, generational shifts, and new laws and regulations if they are to continue.

Our expert employment law team at Burness Paull can help you to prepare your organisation to stay compliant and adapt to employee's new expectations, including reviewing your current policies and procedures. Please get in touch with our employment team for support. 

Related News, Insights & Events