Seasonal cheer can so easily cross the line…
It’s December – and time to celebrate another busy year with staff and clients.
Yet what begins as goodwill can quickly turn sour if the boundaries between work and play blur, says Claire Scanlan.
Whether it’s the Christmas party, client entertaining or generous gifting, legal responsibilities don’t stop when the music starts and the fizz flows.
Crossing the line
However informal or off-site, a Christmas party is still considered a work-related event. In legal terms, it’s an extension of the workplace, and that means employers can be liable for what happens there.
Alcohol, relaxed hierarchies and a change of setting can lower inhibitions fast. Comments or actions that would never arise in the office or shop can surface after a few drinks.
Sexual harassment remains the most recognised risk, but discrimination based on race, age, disability, religion or sexual orientation also counts as unlawful conduct under the Equality Act 2010.
Violence and intimidation, though less common, are real possibilities - especially where tensions between colleagues already exist.
And it’s not only staff who can cross the line. If entertainers, suppliers or guests make racist, sexist or otherwise offensive remarks, the employer still has a duty to protect employees.
Protection is prevention
Employers are expected to take reasonable steps to reduce foreseeable risks, and that starts with clear communication.
A short, well-judged pre-party email can set expectations and avoid problems later. It should confirm that company policies on conduct, equality and harassment still apply and that disciplinary action may follow if they’re breached.
Managers set the tone and are best placed to notice when things are heading off course. One senior person remaining sober and alert can prevent a light-hearted evening from turning into a legal headache.
Simple measures help too. You can limit free alcohol, provide food and soft-drink options, and arrange taxis or minibuses home for anyone unfit to drive. These practical steps show a genuine duty of care without dampening the festive mood.
Who to invite
Inclusivity deserves as much attention as conduct. Invitations should go to everyone, including those on maternity or paternity leave, long-term sickness absence or remote work patterns.
Forgetting someone can easily cause resentment or even a discrimination complaint.
If partners are invited, make it clear that same-sex partners are equally welcome.
Food and entertainment choices should respect cultural and religious differences. Consider asking staff for dietary preferences or cultural sensitivities in advance.
Taking a little extra care with these details sends a powerful message about fairness and respect, and helps keep morale high well beyond Christmas.
When giving gets too generous…
The spirit of generosity is part of the season, but it’s also an area where employers can slip up.
Gifts for clients, suppliers or staff sit at the crossroads of tax law and anti-bribery regulation, both of which require careful handling.
Under the Bribery Act 2010, it’s an offence to offer or receive any financial or other advantage intended to influence a business decision.
Extravagant gifts, lavish entertainment or ‘thank-you’ payments can all cross the line from courtesy to impropriety, whether given or received.
Transparency is essential: keep gifting within modest limits, record what’s given or accepted, and ensure there’s a written policy setting out what’s appropriate.
Tax rules matter too. HMRC’s ‘trivial benefits’ exemption allows small gifts under £50 per person (provided they’re not linked to performance) to be free from tax and National Insurance.
Anything beyond that, such as cash bonuses or vouchers redeemable for goods, counts as taxable income and must be reported.
About the Author: Claire Scanlan is from Buckles Solicitors (www.buckles-law.co.uk) and has more than 20 years’ experience as an employment law solicitor.
