Christmas Parties and Sexual Harassment.

It’s that time of year again when lots of companies will be having a work Christmas party. Although work parties are, of course, intended to be fun events, employers and employees alike should be mindful that they are an extension of the workplace – so employers can be liable for the actions of their employees, and any misconduct may be dealt with in accordance with the employer’s disciplinary procedure.

Employers now have a positive duty to take reasonable steps to prevent sexual harassment in the workplace, and this extends to work events – and not only to sexual harassment by employees, but also third parties, such as clients, business contacts or employees’ partners or other guests, who may be invited.

In order to discharge their duty to seek to prevent sexual harassment, employers should carry out, and keep up to date, an appropriate risk assessment. This should include consideration of what could happen at Christmas parties, or other events, including taking account of the different power dynamics between junior and senior members of staff, whether third parties will be present, and the potential influence of alcohol. Employers should then communicate in advance what behaviour is not acceptable at such events.

Part of that communication is that employers are required to have a policy in place which appropriately addresses sexual harassment, either as part of a wider anti-harassment policy, or in addition to a wider policy. The policy should set out clear examples of sexual harassment and include a comprehensive reporting procedure.

It is good practice, and a reasonable step, to provide comprehensive, periodic training to staff on recognising and reporting sexual harassment, focussing on creating a supportive environment, and empowering staff to speak up. That work-related events are an extension of the workplace, where sexual harassment will also not be tolerated, should be a part of such training.

If an employee succeeds in a claim for sexual harassment, they could be awarded thousands of pounds in compensation for injury to feelings, financial losses (such as lost earnings, if they are caused to be off sick without pay or if they resign, and/or in relation to the cost of therapy or medical treatment) and, if the employer has behaved particularly badly, aggravated damages. There is no cap on such compensation. If the employer has breached its duty to take reasonable steps to prevent the harassment, it will be liable, as well as the perpetrator, and it will be open to an employment tribunal to apply an uplift on any award of up to 25%.

Other potentially adverse consequences for employers are reputational damage and damage to staff morale, and an adverse impact on staff turnover and the ability to recruit.

Conversely, taking the above steps to prevent sexual harassment will, of course, make it less likely that such incidents will occur, help limit the damage to victims and organisations if they nevertheless do occur and, ultimately, will protect employers against liability.

If you are an employer that requires advice in connection with preventing sexual harassment, in preparation for the party season or otherwise, or if you require advice following an incident that occurs at a work Christmas party, contact a member of our employment team on 0800 652 3371.