Employers Could Face Claims For Unlimited Compensation At Tribunals

Irwin Mitchell anticipates a significant reduction in office Christmas parties this year as new regulations requiring employers to prevent workplace sexual harassment come into effect.

Updated legislation, which came into force at the end of October, imposes a duty on employers to take reasonable steps to prevent sexual pestering of their workers. Employers that fail to do so could face claims for unlimited compensation at tribunals.

Elaine Huttley, Head of Employment at Irwin Mitchell, comments: “Work-related social events pose particular risks, especially when held in public venues where alcohol is available. Consequently, many businesses are reconsidering their traditional festive celebrations to ensure compliance with these new obligations.”

To assist employers in navigating these requirements, Elaine Huttley offers the following advice:

“Organising, funding, or encouraging attendance at a work party typically makes the employer vicariously liable for employees’ actions, even if the event is off-premises or outside regular working hours. It is prudent to assume liability and take preventive measures.”

“Evaluate whether your staff might be at risk of harassment from others not under your control, such as other patrons or venue staff. Request the venue’s risk assessment and assign managers to monitor staff and intervene if necessary.”

“Alcohol can impair judgment and increase the likelihood of inappropriate behaviour. Avoid offering a free bar to discourage excessive drinking. Provide non-alcoholic options and ensure water is readily available. Managers should monitor consumption and arrange safe transport for any extremely intoxicated employees.”

“Participation in work parties should be voluntary. Make it clear that employees can decline without explanation. If the event takes place during working hours, consider alternative arrangements for those who do not wish to attend, such as compensatory time off.”

“Remind staff that respectful behaviour is expected and that company policies apply during the party. Communicate these expectations when invitations are accepted and just before the event. Clearly outline potential consequences for inappropriate behaviour and ensure staff know whom to contact if they encounter or witness any issues.”

Employers who fail to comply with the new harassment prevention rules could face serious legal repercussions. Elaine Huttley explains: “Employers found to have neglected their duty to prevent sexual harassment may face claims for unlimited compensation at tribunals. This underscores the importance of taking proactive measures to protect employees and ensure a safe working environment.”

Elaine Huttley concludes: “We anticipate that many businesses will opt for smaller, more controlled celebrations this year. The key is to plan and take proactive measures to ensure a safe and enjoyable event for everyone while fulfilling legal obligations.”