All I Want for Christmas… Is No Tribunal Claims!

Every December, as tinsel appears on desk dividers and someone inevitably suggests Christmas jumpers, employers across the UK prepare for that glittering highlight of the corporate social calendar: the work Christmas party. It is a chance for teams to unwind, celebrate the year’s efforts and, if we are honest, witness at least one questionable dance move.

But beneath the sparkle lies a slightly sobering truth. Under employment law, the Christmas party is not just a social gathering; it is deemed an extension of the workplace. That means the employer’s legal responsibilities do not clock off when the bar tab opens. Behaviour at the event, good, bad or disastrously memorable, can have real consequences.

So, before the festivities begin, it is worth unwrapping the key risks and understanding how employers can protect their staff, their reputation and their sanity, while still delivering a thoroughly enjoyable evening.

The Party That Counts as “Work”

The principle of vicarious liability means employers can be held responsible for misconduct carried out by employees “in the course of employment”. Tribunals have confirmed that work-organised Christmas parties fall neatly within that definition, regardless of whether they take place off-site or out of hours.

This can lead to a range of claims, including discrimination or harassment under the Equality Act 2010, personal injury claims if someone is hurt, and unfair dismissal claims if disciplinary action following the event is mishandled. Misconduct influenced by alcohol is still misconduct, and tribunals are unlikely to show sympathy to employers who fuelled the problem with unlimited bar tabs or failed to intervene early.

The legislative backdrop has also become more demanding. The Worker Protection (Amendment of Equality Act 2010) Act 2023, now in force, places a positive obligation on employers to take reasonable steps to prevent sexual harassment. This duty to prevent sexual harassment, introduced in October 2024, requires employers to be genuinely proactive. This is not a “draft a policy and forget it” scenario, it involves real action, training, risk assessments, communication and monitoring. Where an employee does not take active steps to prevent sexual harassment, this could lead to larger financial risks in terms of compensation at tribunal (a 25% uplift may be applied to discrimination compensation) and enforcement action by the Equality and Human Rights Commission.

Where Festive Cheer Can Turn Frosty

• Sexual Harassment

A common issue arising from work Christmas parties is sexual harassment. With alcohol flowing and inhibitions slipping, comments, gestures or physical behaviour that would normally be restrained can unfortunately find their way into the evening. Many misunderstand what counts: it is not limited to unwanted physical contact. Sexualised remarks, innuendo, inappropriate jokes or showing a colleague an explicit image can all amount to harassment. Often the person making the comment or joke will hone in on their intention and the fact they did not mean to upset or offend. However, legally, the predominant focus is on the effect on the recipient, often regardless of the intention.

Importantly, employers must also safeguard employees from harassment by third parties such as clients, suppliers or even an over-zealous plus-one. While the “reasonable steps” defence exists, it is difficult to satisfy, and the threshold is due to rise again in 2026 to “all reasonable steps” once the Employment Rights Bill is enacted.

• Damage to Property

Over-enthusiasm on the dancefloor can leave employers facing repair bills where the party is hosted at an external venue. If the damage is wilful or negligent, disciplinary action may need to follow, though deductions from wages are only lawful if the employee’s contract expressly allows it or the employee agrees.

• Fights, Arguments and Verbal Abuse

Every HR professional knows that alcohol has a remarkable ability to revive old grievances. Occasionally, this leads to arguments or even physical altercations. Verbal abuse can be subtle; mockery, hostility or humiliation are just as significant as raised voices, and allegations must always be taken seriously. Employers have a duty to investigate thoroughly, examine the background to any dispute and ensure no complainant is treated unfavourably for speaking up.

• The Morning After

It is one thing to turn up to work looking tired; it is another to arrive clearly still intoxicated, particularly in safety-critical roles. Employers must act quickly, assess the situation and follow internal procedures. Crucially, they should look carefully at the wording of their policies: being “under the influence” and being “unfit for work” are not always synonymous.

Proactive Steps to Keep the Party Festive, Not Fraught

Employers can dramatically reduce risk with a few sensible, straightforward measures, none of which require transforming into Scrooge.

A pre-event communication is often the most effective tool. It does not need to strike fear into the hearts of staff; a friendly note reminding employees that workplace standards still apply can be enough. Reinforcing expectations around respectful behaviour, alcohol consumption and zero tolerance for harassment helps set the tone before champagne does.

Managing alcohol thoughtfully also makes a noticeable difference. Offering generous non-alcoholic options, ensuring food is available and avoiding the temptation of unlimited free drinks all help create a safer atmosphere. Senior managers should stay alert throughout the night, gently steering situations back on track if someone edges towards trouble.

Inclusivity is equally important. All employees, including those on family leave or sickness absence, should be invited, and venues must accommodate accessibility and dietary needs. Employers should also be sensitive to the power dynamics created by senior staff. Junior colleagues should never feel pressured to drink with leadership or fear that opting for a soft drink might affect their career prospects.

Finally, employers should ensure that support systems are in place before, during and after the event. Some organisations designate trained individuals who can discreetly handle concerns on the night. Others provide confidential reporting channels or anonymous inboxes for post-event issues. Above all, if something does arise, the employer must follow its internal procedures and the ACAS Code, investigate fairly and avoid any hint of retaliation against those who raise genuine concerns.

Keeping the Spirit Festive

A well-run Christmas party can be a brilliant morale booster and a celebration of everything achieved during the year. It does not need to be overshadowed by legal pitfalls. With clear communication, sensible planning and a genuinely supportive culture, employers can create an environment where staff feel safe, respected and free to enjoy themselves, and where the only thing people talk about the next morning is that surprisingly excellent karaoke duet.

If you would like help preparing pre-event communications, reviewing policies or drafting a “reasonable steps” action plan, we are happy to assist.