The Do’s and Don’ts of Company-Sponsored Events

HRinfodesk---Canadian Payroll and Employment Law, November 2004

Every year employers plan company-sponsored events- such as the office Holiday party, with the objective of having a safe and memorable experience with and for their employees and customers. Every employer planning such an event needs to think about the safety of the people attending, especially if some of those people are going to be drinking alcohol. Recent court cases have broadened the scope of employer responsibility for monitoring employee behaviour at company-sponsored events where alcohol is served; and it is therefore crucial that employers understand the legal responsibilities and risks that such events involve, including the know how to reduce the potential for legal liability.

One important point to remember is that the law imposes a duty on employers to provide a safe workplace and protect employees from harm, including harm resulting from an employee’s own actions. "Harm" can mean physical harm, damage to property and violence, but also consists of sexual and other forms of harassment. Employers can also be held liable for injuries or damages caused by an employee to themselves and/or to a third party after an employee gets drunk at a company-sponsored event. An example of this would be if an employee who has had too much to drink at an office Holiday party causes an accident while driving home. Below, the reader will find links to two articles that examine these court decisions.

Although the law is not yet definitive in this area, to reduce their potential legal liability, employers need not forbid alcohol consumption at company-sponsored events, nor eliminate such events altogether, however, there are a number of precautions that employers can take to ensure that these occasions are both safe and enjoyable. Here are a few dos and don’ts for employers:

* Do establish a company policy that clearly sets out the employer’s expectations regarding employee behaviour in the workplace and at company-sponsored events. The policy should emphasize that employee drinking and driving and sexual and other forms of harassment will not be tolerated. It should also include a dress code policy reminding employees that they still represent the company at company-sponsored events and must dress accordingly.

* Do remind employees before each company-sponsored event that all company policies on employee behaviour remain in full force at all such events. Encourage moderation by reminding employees that the event is also a business function.

* Do make employee attendance at company-sponsored events voluntary.

* Do designate one or several employer representatives to monitor the party, the guests and consumption of alcohol.

* Do warn employees before each company-sponsored event that they will not be allowed to drive home if they have had too much to drink. Consider prearranging free transportation or overnight hotel accommodation for employees who may be too drunk to drive home. Alternatively, ask employees to appoint a designated driver before the event begins, or, arrange for another form of transportation (such as a taxi or a bus) that will be available if employees are too drunk to drive home. Designated drivers must, of course, agree not to drink alcohol immediately before and during the event.

* Do have employees’ hand over their car keys for safekeeping before the event begins.

* Do hire a bartender for any event where alcohol will be served, even if the event is held in the workplace. Ensure that the bartender has been trained to avoid over-serving, serving customers who are under 18, or who have had too much to drink. Remind anyone serving drinks at the event not to serve employees who are visibly drunk.

* Don’t encourage unsupervised drinking by setting up an open bar (remember, too, that people tend to drink more when serving themselves).

* Do consider limiting the number of drinks an employee can have by issuing two or three drink tickets to each employee at the beginning of the event.

* Do ensure that if the event is held at a hotel or restaurant, that the contract clearly states that the bar staff will identify intoxicated employees to employer representatives. If possible, have the contract stipulate that liability is shifted to the hotel or facility.

* Do ensure that a variety of non-alcoholic beverages are available for designated drivers and others who don’t wish to drink.

* Do ensure that plenty of snacks and nutritious foods are available for the duration of the event so that employees don’t have to drink on an empty stomach.

* Don’t provide too many salty snacks - these, of course, make people thirsty and thus likely to drink more.

* Do provide forms of entertainment that will shift the focus away from drinking during the event, but avoid activities that require physical effort, for these will only increase the likelihood of injury among the participants, especially those who have been drinking.

* Do stop serving alcohol at least two hours before the end of the event.

* Do make a Breathalyzer available so that employees can test themselves to see whether they have had too much to drink. Inexpensive Breathalyzers for workplace use can be ordered over the Internet at Craig Medical and other vendors. The price varies from $35 to $725.

* Don’t create an atmosphere conducive to sexual harassment by providing risqué or potentially offensive forms of entertainment. The likelihood of sexual harassment incidents can also be reduced by inviting employees to bring their spouses and significant others to the event. Giving out sexually suggestive or otherwise inappropriate gifts at workplace holiday celebrations is also strongly discouraged.

* Don’t hesitate to call the employee’s spouse/family member to pick them up or the police if need be, if an employee is refusing to be reasonable.

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