As the tradtional Xmas party season approaches, it is not only the current recessionary times that employers need to consider when organising the Staff Xmas Party. A significant number of cases taken by employees under different pieces of employment legislation illustrate very clearly that employers need to be aware of and take responsibility for behaviour and problems that may arise at or as a result of work related social events, which are deemed to be an extension of the workplace. Otherwise, the cost of the Xmas party will be far in excess of what was budgeted, as the following recent cases illustrate:
An employee attending her Xmas Party during a period of maternity leave was awarded 25k for constructive dismissal after she was called a floozie and stay at home mum by her manager and was unable to return to work. In another case, a waitress who was asked to go home in a taxi with the General Manager and who was subsequently not taken back on after a period of lay off,was awarded 12k for sexual harassment and victimisation under the Employment Equality Acts.
The Employment Equality Acts are important in that they define workplace harassment and sexual harassment as well as the responsibilities of employers. In particular, that employers may be held responsible for the actions of customers and business contacts (Section 14A) and that anything done in the course of employment by an employee, will be regarded as done also by the employer, regardless of their lack of knowledge or approval (Section 15).
So, whilst its important to recognise the contribution of staff to the business (particularly during difficult times) and the good will and morale boost that can result from social events,employers would be well advised to take a number of precautionary measures to help protect themselves from potential claims:
1. Ensure there is a clear and well communicated bullying and harassment policy in place.
2. Remind all staff that failure to abide by normal standards of behaviour at work related social events will be dealt with under the company disciplinary policy.
3. Follow up on all complaints promptly and fairly. Managers with responsibility in this area should be trained and know how to handle a complaint.
4. Dont discuss pay, promotions and work issues. Leave them until back at work!
5. And finally, encourage moderate alcohol consumption and arrange transport home.
In a high profile case published earlier this year, a Company who provided mulled wine and a free bar until 2:00am at its Xmas Party had an award of over 150k made against it to a manager who had been dismissed for an alercation at the Party. The manner in which the matter was investigated and dealt with was held to be unfair and the tribunal believed the evidence of the dismissed employee, who had worked with the Company for over 30 years. The Tribunal also noted the lack of a contract of employment and personnel file for the dismissed employee, who was earning substantially less as a taxi driver since being dismissed. Hence, the maximum award of two years salary !