End-of-Year Work Events: Managing Legal Risks

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* The interview starts at the 1:25 mark.

JEREMY MAGGS: As the year draws to a close, many companies are gearing up for their year-end celebrations. However, these events can pose challenges, ranging from liability issues to the management of employee behavior; employers must proceed with caution.

Today, I have Sashin Naidoo, an associate specializing in employment law at Cliffe Dekker Hofmeyr, with me to discuss the legal factors surrounding year-end parties. Welcome, Sashin. What are the main legal risks that employers should keep in mind during these events?

SASHIN NAIDOO: Jeremy, one major concern at workplace gatherings is employee conduct. Such occasions often serve as chances to celebrate the past year and usually include considerable alcohol consumption.

During these festivities, certain behaviors displayed by employees may raise eyebrows, leading to understandable concerns for employers.

JEREMY MAGGS: Should employers be rigorously enforcing workplace conduct codes, especially during offsite events? Maintaining a balance between enjoyment and professionalism seems essential.

SASHIN NAIDOO: Absolutely. It’s vital for employees to understand that professionalism remains important at any workplace event. Employers’ codes of conduct and disciplinary policies must be strictly observed, as year-end celebrations do not exempt anyone from these standards.

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JEREMY MAGGS: Is it correct to say that offering alcohol at work functions, whether onsite or offsite, adds layers of liability, particularly regarding misconduct or accidents?

SASHIN NAIDOO: Definitely. In addition to potential health and safety concerns linked to alcohol use, the employer could also be held legally responsible for any incidents or damages resulting from an employee’s actions during a work-related event.

This doesn’t imply that every incident results in claims against the employer for employee misconduct; however, when there’s a clear connection to the workplace occasion, it can complicate matters and introduce potential legal liabilities.

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JEREMY MAGGS: To navigate this effectively, it may be prudent for companies to set clear guidelines for year-end functions and outline the repercussions for any violations of those guidelines.

SASHIN NAIDOO: Exactly. Employers can implement various strategies to reduce risks for both themselves and their employees. A good starting point is to educate employees on expected behaviors, especially during offsite gatherings, where the potential for reputational damage—both to individuals and the employer—is heightened.

This education should be ongoing throughout the year, rather than limited to the festive season, to reinforce the standards of conduct that are expected consistently.

As we near the year’s end, it’s also crucial for employers to remind staff of the consequences of inappropriate behavior during these events.

Moreover, to help mitigate risks during these occasions, it may be advantageous to implement certain measures. One effective approach could be to limit the number of alcoholic beverages each employee is allowed to consume. There are innovative ways to enforce this.

Drink vouchers

Using drink vouchers or tickets is an effective method for managing consumption, and it’s helpful to instruct bartenders or servers to refuse service to anyone who appears intoxicated. Additionally, arranging transportation to and from the venue can help reduce employer liability. Employees may also be asked to sign an acknowledgment of their responsibility for any damages that occur during these events.

Furthermore, it’s vital to engage management; they must have a clear understanding of company policies regarding alcohol and substance abuse, as well as their responsibilities in the event of employee misconduct.

JEREMY MAGGS: Finally, while we’ve focused on alcohol-related concerns, such events can also lead to harassment or other inappropriate behaviors. What immediate actions should a company take if claims of such behavior come to light?

SASHIN NAIDOO: The first step for the company should be to investigate any allegations of sexual harassment. It’s crucial to acknowledge that sexual harassment is a form of discrimination, which can result in liability under the principle of vicarious liability, holding the employer accountable for an employee’s actions.

When facing claims of discrimination, particularly sexual harassment, employers have a duty to conduct a thorough and timely investigation. They also need to take steps to eliminate all forms of harassment and support those who report such incidents.

Employers must act promptly and take all reasonable measures to address these issues, considering the unique circumstances of each situation.

JEREMY MAGGS: It appears the best advice, as we’ve discussed, is to enjoy the celebrations while remaining vigilant and responsible so everyone can return to work in 2025. Thank you, Sashin Naidoo, associate in employment law at Cliffe Dekker Hofmeyr, for your valuable insights.

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