With Christmas around the corner, businesses everywhere are gearing up for the annual holiday party. But as joyous as these gatherings can be, they’re also loaded with potential pitfalls. Recent changes under the Worker Protection (Amendment of Equality Act 2010) Bill, effective from October 2024, have increased employers’ responsibilities in preventing sexual harassment. Here’s a guide to understanding these new obligations and making sure your company Christmas party is remembered for the right reasons.

Why the Christmas Party Is Legally Considered “Work”

Any company-hosted event, whether onsite or off, counts as an extension of the workplace. This means the company’s standards and policies on conduct apply even when the setting feels informal. Now, with the latest legislative changes, the stakes for managing harassment risks are higher, as employers are expected to proactively guard against these issues.

The Worker Protection (Amendment of Equality Act 2010) Bill: Key Changes in Sexual Harassment Laws

The recent legislative updates strengthen protections against workplace sexual harassment and place more responsibility on employers. These are the main changes:

  1. Proactive Duty to Prevent Sexual Harassment

    The new law introduces a positive duty on employers to take “all reasonable steps” to prevent sexual harassment. This means it’s no longer enough to reactively address issues. Companies must demonstrate that they’ve taken preventative measures, such as educating staff on conduct and risks, providing training, and monitoring behaviour. Employers who fail to meet this duty may face penalties, especially if incidents occur without these safeguards in place.

  2. Liability for Third-Party Harassment

    Previously, employers were only liable for harassment by third parties—such as clients or event staff—if an issue had been reported multiple times. Now, the law extends accountability for any third-party harassment, regardless of prior incidents. If an employee is harassed by a third party, and the employer hasn’t taken reasonable steps to prevent it, the company may be liable.

  3. Higher Penalties for Non-Compliance

    Courts are now empowered to impose increased financial penalties on employers who fail to fulfil their new duties. This reflects the importance of active prevention, and damages may be higher in cases where companies can’t show proactive measures were taken.

Real-World Lessons: When Missteps Lead to Court

The importance of proactive policies is underscored in cases like Bellman v Northampton Recruitment Ltd, where an unplanned “after-party” incident led to serious injury and subsequent litigation. The company was held liable because the senior director’s authority extended beyond regular work hours. On the other hand, Shelbourne v Cancer Research UK illustrates how effective risk assessment can protect employers from liability, as the company’s thorough planning was deemed sufficient to absolve it of liability when an incident occurred.

These examples underscore the need for clear, enforceable boundaries around holiday events, along with a well-planned approach to ensure employee safety and respect for all involved.

Updated Christmas Party Checklist: Ensuring Compliance with New Laws

  1. Reinforce Standards of Conduct

    Reiterate company expectations and policies on behaviour. Employees should understand that conduct standards apply to the holiday party, just as they would in the office. Outline the company’s zero-tolerance policy on harassment and encourage employees to be mindful of their actions.

  2. Limit Alcohol Consumption

    Set clear guidelines on alcohol, as excessive drinking can often lead to misbehaviour. Consider using drink vouchers or a cap on alcohol served. Also, provide non-alcoholic options to ensure inclusivity for those who may not wish to drink, whether for cultural, religious, or health reasons.

  3. Consider Third-Party Harassment Risks

    With the new law, liability for harassment extends to interactions with external parties, such as venue staff. Brief both employees and any third-party staff on respectful interactions and ensure all parties are informed of expected conduct.

  4. Establish a Clear End Time

    Set a firm closing time for the event and communicate it to all attendees. Ending the party at a reasonable hour helps prevent after-party incidents and reinforces that this is a work-sponsored event.

  5. Appoint Managers to Monitor the Event

    Have designated managers or team leads to supervise and assist in de-escalating any potential issues. These “party chaperones” can help maintain a respectful environment and offer guidance if issues arise.

  6. Implement Next-Day Safety Reminders

    If employees are expected to work the following day, particularly in roles involving machinery or driving, remind them to manage their alcohol intake responsibly. Safety awareness shouldn’t stop at the end of the event.

  7. Promptly Address Incidents

    If an incident occurs, follow up promptly. Adhere to the company’s grievance and disciplinary policies and show transparency in investigating and handling issues, especially in cases of harassment or misconduct.

Take Control of Your Company Culture This Holiday Season

With the Worker Protection (Amendment of Equality Act 2010) Bill now in place, there’s no better time to revisit and strengthen your company’s approach to holiday gatherings. Understanding and implementing these changes can be complex, and the stakes are high. Gepp Solicitors is here to help you ensure compliance, protect your business, and provide a safe environment for all employees.

For expert advice on how to manage new obligations around sexual harassment and ensure your policies and practices are up to date, contact Gepp Solicitors today. Protect your business, your people, and your holiday celebrations by getting the legal guidance you need.