Protecting Your People, Your Business and Your Reputation

For many businesses, the company Christmas party is a well-earned opportunity to celebrate the year’s successes, thank employees for their hard work and include some team building.

When planned well, it can be a positive and memorable event. When it isn’t, the consequences can extend far beyond a hangover. Employers have a duty of care to their staff, even at social events. Inappropriate behaviour, excessive alcohol consumption or accidents can expose businesses to reputational damage, legal claims and insurance issues. With careful planning and the right insurance advice, these risks can be reduced significantly.

A Christmas party should be a celebration, not a source of stress in the New Year. By setting expectations clearly, managing alcohol sensibly, choosing venues carefully and reviewing insurance cover in advance, employers can significantly reduce risk. Below we have outlined practical steps employers can take to safeguard staff, protect their reputation and ensure their festive celebrations don’t turn into problems.

Set clear expectations in advance

The most effective risk management starts well before the event. Employers should clearly communicate what standards of behaviour are expected and what will not be tolerated. This should align with existing policies such as your employee handbook, alcohol and drugs policy – and disciplinary procedures.

A simple reminder that workplace rules still apply at work-related social events can help reset expectations and prevent issues from escalating.

Reinforce zero tolerance on misconduct

Christmas parties are a common setting for complaints involving harassment, discrimination or violence. Employers should remind staff of their obligations under equality and dignity-at-work policies and the consequences of failing to comply.

Being proactive in this area protects both employees and the business.

Think carefully about alcohol

Alcohol is often central to festive events, but unlimited drinking can significantly increase risk. Moderation reduces the likelihood of accidents, arguments and inappropriate behaviour later in the evening.

Provide food

Food helps to slow alcohol absorption and encourages a more controlled environment. Even if a sit-down meal isn’t planned, ensuring sufficient food is available throughout the event can make a meaningful difference.

Be inclusive and considerate

Not all employees drink alcohol, and others may have dietary requirements or cultural preferences. Offering inclusive options ensures everyone feels comfortable and respected, which in turn reduces the risk of exclusion-related complaints.

Insurance Considerations

• Regardless of the size of the event, a documented risk assessment is essential. This demonstrates that reasonable steps were taken to manage foreseeable risks and may prove crucial if an incident occurs.
• Entertainment or activities such as games, physical challenges or themed events can increase risk. Always check with your insurance broker that any higher-risk elements are disclosed and covered.
• Ensure your chosen venue has appropriate public liability and safety procedures in place. Reputable venues should be happy to confirm this.
• Christmas parties organised or endorsed by the employer are often classed as work-related events. This means employers’ liability insurance may need to respond if an employee is injured or claims negligence. Speak to your broker to confirm cover and any policy conditions.
• Depending on circumstances, directors or senior managers could face allegations relating to failure to supervise, prevent misconduct or manage risk appropriately. Management Liability insurance may provide protection in certain scenarios, but policy cover varies and advice should be sought in advance.

We hope you enjoy the festivities – safely and responsibly!