Christmas party misconduct: employer risks and legal guidance

This article was written as seasonal guidance for employees attending work Christmas events. The underlying employment law principles – gross misconduct, summary dismissal and disciplinary procedures – remain current.

Christmas is traditionally a time when people start to wind down at work. Plans are put in place for the New Year and we begin to look forward to festivities such as Christmas parties. This is obviously a happy time, but it is easy to let the spirit of the season carry you away. It is not unusual for employees to find themselves in disciplinaries after the festive period, relating to their behaviour at the employer’s Christmas party.

From an employer’s perspective, the Christmas knees-up can be a balancing act between giving staff a free rein and keeping a lid on the frivolity.

We have highlighted several instances of employee misconduct we have advised on arising from Christmas parties and offer guidance for employers looking to avoid issues during the festive period.

Snap decisions

Work-sponsored social events occupy an unusual space. While they are social in nature, they remain connected to the workplace. Alcohol is often involved, which can lead to poor decision-making. In our experience, this can result in promises made in the moment – such as pay rises – or even impulsive dismissals. These decisions rarely withstand scrutiny later and often lead to disputes.

Harassment

Alcohol-fuelled environments can also increase the risk of inappropriate behaviour, including harassment. Comments made in jest or physical contact that crosses a boundary can have serious consequences, exposing both the individual and the employer to liability.

Fighting at christmas parties

A key legal question is whether misconduct at a social event takes place “in the course of employment” and therefore falls within the scope of workplace policies. For example, a fight between employees at a party may justify disciplinary action.

If a third party becomes involved and is injured, the employer may face potential liability for the actions of its employees, even outside normal working hours. The extent of this liability will depend on the specific circumstances, but the risk should not be overlooked.

Dismissals in the heat of the moment

Employers should avoid making disciplinary decisions on the spot. A dismissal issued in the heat of the moment is unlikely to meet the requirements of a fair procedure and may lead to a finding of unfair dismissal.
Although compensation can be reduced where an employee’s conduct is sufficiently serious, employers must still follow a fair process. It is also important to note that a dismissal cannot simply be withdrawn unilaterally. Once communicated, it requires the agreement of both parties to reverse, and the employment relationship may already be damaged.

Steps employers can take

Employers can take practical steps to reduce the risk of issues arising:

• Remind staff in advance that work events, even when held offsite, remain an extension of the workplace
• Reinforce expectations around behaviour, including reference to relevant policies such as alcohol and drug misuse
• Ensure policies are clear, up to date and consistently applied
• Encourage a culture of personal responsibility while maintaining professional standards

In most cases, trusting staff to act appropriately can be beneficial. The aim is to achieve a balance between encouraging personal responsibility, trusting staff to act responsibly and gently reminding them of the consequences of poor behaviour.

For more on disciplinary procedures, see our disciplinary and grievance solicitors page.