Employment tribunals stemming from company Christmas parties have fallen by half (54%) in three years, an analysis of court records has found.
Ten employment tribunal cases have cited Christmas parties so far in 2024, down 54% from the 22 cases seen in 2021. Cases that year were an eight-year high, according to HR consultancy Hamilton Nash, the firm that compiled the figures from tribunal data.
The decline in the number of cases may be the result of a gradual fall in the number of office Christmas parties over the past six or seven years, suggested Hamilton Nash, or a fall in the level of alcohol consumed.
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One-third (32%) of the cases related to sexual discrimination, 43% of which were upheld.
Sexual harassment and inappropriate behaviour triggered by consumption of alcohol, often provided by the company, featured in many of the cases.
The Worker Protection Act 2023, which came into force in October, could add to cases in the hospitality sector, in particular, because employers now had a legal duty to prevent sexual harassment in the workplace including from third parties such as clients or contractors. This could mean, for example, that hospitality venues are exposed in situations where their workers are harassed by the employees of firms that have booked facilities.
At the extreme end of incidents, Hamilton Nash noted a tribunal case in which an employee of homebuilder Crest Nicholson was raped by a site manager in her hotel room following a work Christmas party where unlimited free alcohol had been served sinch lunchtime.
The tribunal found the employer liable, ruling that the site manager’s actions were done “in the course of his employment”. The company was criticised for failing to put adequate safeguards in place at the alcohol-fuelled event.
In another case, at a Christmas party in 2018 where staff were sharing a £500 bar tab provided by management, the general manager of a pub company was put in a “playful” headlock by a colleague and fell unconscious. The tribunal criticised management’s dismissive handling of her subsequent complaints and grievances about feeling unsafe working with the colleague, including telling her to “get over it”.
Jim Moore, employee relations expert at Hamilton Nash, said employers now needed to be far more proactive around safety at Christmas parties. They had to remember that “they could be found vicariously liable for misbehaviour that happens on their watch”.
He added: “We’re concerned that too many businesses may not be aware of their obligations under the Worker Protection Act 2023. For example, a hospitality employer is potentially liable for sexual harassment against their staff by intoxicated Christmas party revellers.”
The Worker Protection Act
The Worker Protection Act 2023 introduced a new, positive obligation on employers to take ‘reasonable steps’ to prevent sexual harassment of their workers. Under the new duty, employers are required to foresee scenarios when their workers may be subject to sexual harassment in the course of their employment and take pre-emptive action to prevent it from taking place.
While a worker cannot bring a standalone claim if their employer fails to take reasonable steps to prevent sexual harassment, there are important consequences. Where a worker successfully brings an employment tribunal claim for harassment involving sexual harassment, any compensation awarded could be uplifted by up to 25% if the tribunal finds that the employer failed to take reasonable steps to prevent sexual harassment.
This uplift can be applied to all compensation awarded to the worker under the Equality Act, not just to the compensation awarded for the sexual harassment itself.
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