With December around the corner, employers are now planning the Christmas party. This event offers a chance to celebrate the achievements of the year, with an opportunity to thank staff for their hard work and in turn, boost morale. However, with these celebrations and merriment, come notable risks for employers, particularly around the actions and behaviours of employees who have had ‘a few too many’.   
 

What is Vicarious Liability?
Vicarious liability is a legal concept that holds employers responsible for acts committed by their employees in the course of their employment. With Christmas parties being considered an extension of the workplace, this can mean employers are liable for actions taken at such festive events. Even if an employer is unaware of their employee’s behaviour (which is often the case), they may still be liable for acts such as discrimination, harassment, or victimisation, when the conduct is sufficiently closely connected to the employee’s role or the workplace. 

Reasonable Steps Defence 
In defending discrimination proceedings, employers can utilise the reasonable steps defence arguing that they are not vicariously liable for such actions. This can be a difficult defence to establish, and to be in with a shout of succeeding, the employer must have been proactive in training and educating staff, to include the Equal Opportunities, Dignity at Work and Harassment procedures. In advance of such work social events, employers should remind staff of the behaviours expected and any risks associated with sub-standard behaviour. 

Case Studies
The case of Bellman v Northampton Recruitment Ltd EWCA in England illustrates these risks. After the company’s Christmas party, a small group, including Mr Major, the Managing Director, and Mr Bellman, the Sales Manager, continued the party at a nearby hotel. In the early hours, a heated discussion about work escalated, and Mr Major assaulted Mr Bellman, causing serious brain injuries. 

Initially, the High Court ruled the company was not liable for Mr Majors actions, viewing the incident as a personal act during a separate, unconnected “drinking session” after the initial gathering had concluded. However, the Court of Appeal overturned this, finding that: 

•    Mr Major represented the company and was acting in a role connected to his employment.
•    The discussions were work-related.
•    The setting at the hotel was an extension of the Christmas party. 

The company was held vicariously liable. This ruling serves as a reminder that employers bear ongoing responsibility for employee conduct during work-related events. Employers must take reasonable steps to ensure their employees conduct aligns with the expectations of the workplace. 

In a local case of Lyons v Starplan Furniture Limited & Ors NIIT , the claimant, an employee at Starplan, alleged sexual harassment by a colleague during the company’s Christmas party. 

The Tribunal, in upholding some of the harassment allegations, found the employer vicariously liable, noting several key failings - management failed to provide guidance on the provision and consumption of alcohol or the required standards of behaviour, the most senior person at the staff party was intoxicated, and that the company failed to take reasonable steps to prevent such behaviour. 

This case underscores the importance of actively managing social events. 

Conclusion 
Employers don’t need to cancel the Christmas party, just plan it carefully. Set clear expectations via relevant policies and procedures and ensure appropriate guidance is given in respect of conduct in advance of the events. 
The Christmas Party should be a chance to celebrate, not litigate. While employers can’t control every interaction, taking reasonable steps to manage risks can make the difference between a night to remember and a legal headache.