The Yuletide season brings with it many positive things – office Christmas parties, laughter and fun – and a few potential negatives – alcohol, “kris kringle” and maybe even legal claims.

While you won’t be expecting anything but good cheer from an office Christmas party, the reality is that in the lead-up to Christmas a variety of liability issues can and do arise – some of which company directors and managers may be held liable for.

Here’s an example.

Mary was a senior executive at a small printing company in Melbourne’s outer suburbs. When she complained to her employer about harassment that she endured at the end of year Christmas party, she felt her complaint was not taken seriously. . 

So she took the company to court, alleging the company didn’t take steps to prevent the incident and didn’t respond appropriately when the incident was reported.

Avoiding a costly courtroom battle, the company settled with Mary for more than $50,000. Legal costs were about the same amount.

As an employer, don’t be fooled into believing you’re not responsible for what goes on at an office party. When staff gather for a few end-of-year drinks, or for any kind of organised function, it is an extension of the workplace – which means an extension of your potential liability.

Here are some tips on how to avoid/reduce your liability:

From all of us at Scott & Broad, have a jolly good time this Christmas – but discuss with us first the various ways to protect your business from the after-hours risks.