Labour and Employment Law Blog

The holiday season often brings a surge of workplace festivities, with office parties serving as a way to boost morale, celebrate successes, and foster team spirit. While these events can be an opportunity to reward employees, they also come with a host of legal risks if not carefully planned. As an employer, understanding the potential pitfalls of holiday parties can help you create a safe and enjoyable event while avoiding legal headaches.

Alcohol-Related Liability

One of the most common risks at holiday parties involves alcohol. If employees overindulge and engage in reckless behavior, the employer could face legal claims. For example:

• DUI Incidents: If an intoxicated employee drives home and causes an accident, the employer could be held liable, depending on the circumstances.
• Workplace Harassment: Alcohol lowers inhibitions and can lead to inappropriate behaviour that could later result in workplace harassment claims.
• Cannabis consumption: given that the personal consumption of cannabis is legal in Canada (with exceptions), unless you have a policy stating otherwise, employees may be intoxicated by cannabis during your party.

Tips:

• Limit alcohol consumption by providing drink tickets or having a cash bar.
• Offer non-alcoholic beverages and substantial food to balance alcohol intake.

• You may wish to expressly forbid cannabis consumption.  

• Use a professional bartender or catering service, trained to avoid over-service.

• Expressly warn employees that they are not permitted to drink and drive.

• Arrange transportation options, such as ride-share or taxi vouchers or a shuttle service, to ensure employees get home safely.

Harassment and Discrimination Concerns

Holiday parties are often less formal than typical work settings, which may blur professional boundaries. Unfortunately, this relaxed environment can lead to inappropriate conduct, including harassment or discriminatory comments.

Tips:

• Remind employees that workplace policies, including the company’s workplace bullying and harassment policy, apply during the event.
• Train supervisors to recognize and address problematic behavior during the party.
• Designate an HR representative or manager to discreetly handle any issues that arise.

• Consider a “no second locations” rule; that the company does not condone after parties and any such gatherings are not work events.

Religious Sensitivities

Holiday parties often celebrate Christmas or other traditions, but not all employees observe these holidays. Failing to acknowledge the diversity of your workforce could lead to claims of exclusion or discrimination.

Tips:

• Opt for an inclusive theme, such as a "winter celebration" or "end-of-year party," instead of focusing on a specific holiday.
• Avoid religious symbols or activities that could alienate employees.

Hours of Work and Overtime Liability

If attendance at the party is mandatory, or if employees perform work-related duties during the event (e.g., setting up, cleaning, or staffing), you may need to compensate them for their time.

Tips:

• Clearly communicate that the party is voluntary.
• Ensure that non-exempt employees are compensated if they perform any work-related tasks during the event.

Workers’ Compensation Claims

Accidents can happen at any gathering, whether it’s a slip on the dance floor or a fall while decorating. If the injury occurs during a work-sponsored event, it may result in a workers’ compensation claim.

Tips:

• Choose a safe venue and inspect it for hazards.
• Ensure activities and decorations are safe and appropriate for all participants.

Key Takeaways for Employers

Holiday parties can boost morale and foster camaraderie, but they also expose employers to legal risks. To protect your company, it’s essential to:

1. Plan the event carefully with potential liabilities in mind.
2. Communicate policies and expectations clearly to all employees.
3. Take proactive steps to create an inclusive, safe, and enjoyable event.

If you have questions about planning a holiday party or navigating employment law risks, our firm is here to help. Reach out to Katy Allen or the Labour, Employment & Human Rights group to ensure your workplace celebrations are both festive and compliant.