Year-End Work Functions: Navigating Legal Risks

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* Interview begins at the 1:25 mark.

JEREMY MAGGS: As the end of the year approaches, many organizations are likely preparing for year-end celebrations. However, these festivities can present challenges, from possible liability concerns to managing workplace behavior; employers must remain cautious.

Today, I have Sashin Naidoo, an associate specializing in employment law at Cliffe Dekker Hofmeyr, here to discuss the legal considerations surrounding year-end functions. Welcome, Sashin. What are the primary legal risks that employers should be aware of during these events?

SASHIN NAIDOO: Jeremy, a significant issue during workplace functions is undoubtedly the behavior of employees. These events often serve as opportunities to celebrate the past year, and typically involve a considerable amount of alcohol consumption.

There are behaviors exhibited by employees that some might find questionable, which understandably causes concern for many employers during this festive period.

JEREMY MAGGS: Should employers therefore be strictly enforcing workplace codes of conduct, especially at offsite functions? Striking a balance between celebration and maintaining professionalism seems crucial.

SASHIN NAIDOO: Absolutely. It’s essential for employees to recognize that professionalism is key during any workplace activity. Employers’ codes of conduct and disciplinary procedures should be strictly adhered to, as year-end functions are not an excuse to ignore these established standards.

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JEREMY MAGGS: Is it safe to say that providing alcohol at work functions, whether on-site or off-site, complicates liability, especially concerning misconduct or accidents?

SASHIN NAIDOO: Indeed. Beyond potential health and safety risks associated with alcohol consumption, the company may also bear legal responsibility for any damages or incidents resulting from an employee’s behavior that can be linked to the work event.

This is not to say every incident leads to claims against the employer for an employee’s unprofessional behavior; however, when a clear connection to the workplace event exists, it can create complications and potential legal liabilities.

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JEREMY MAGGS: To navigate this effectively, perhaps it’s best for companies to establish clear guidelines for year-end functions and discuss the consequences for breaches of those guidelines.

SASHIN NAIDOO: Yes, precisely. Employers can implement several measures to minimize risks for both themselves and their employees. A good starting point is to educate employees about the expected behavior, particularly during offsite events, where the potential for reputational damage—both to the individual and the employer—is higher.

This education should not just take place during the festive season but should be ongoing throughout the year to reinforce the standard of conduct expected at all times.

As we approach the end of the year, it’s also important for employers to remind staff of the repercussions of inappropriate behavior during these events.

Additionally, to mitigate risks during these functions, it can be beneficial to implement certain measures. One effective strategy could involve limiting the number of alcoholic drinks each employee can consume. There are creative ways to enforce this.

Drink vouchers

Providing drink vouchers or tickets is a useful method for managing consumption, and informing the bartenders or servers to deny service to anyone appearing intoxicated can be effective. Moreover, arranging transportation to and from the event can help limit employer liability. Employees could be required to sign an acknowledgment of their responsibility for any damages occurring during these gatherings.

Furthermore, it’s crucial to involve management; they must clearly understand company policies regarding alcohol and substance abuse, as well as their duties if one of their subordinates misbehaves.

JEREMY MAGGS: Lastly, while we’ve concentrated on alcohol-related issues, such situations can often lead to harassment or other inappropriate behaviors at these events. What immediate steps should a company take if claims of such behavior arise?

SASHIN NAIDOO: The company’s immediate action should be to investigate any allegations of sexual harassment. It’s important to recognize that sexual harassment constitutes discrimination, leading to potential liability under the principle of vicarious liability, which means holding the employer accountable for an employee’s actions.

When facing allegations of discrimination, particularly sexual harassment, employers must investigate thoroughly and promptly. Additionally, they have a responsibility to eliminate all forms of harassment and to support those who report such incidents.

Employers must take all reasonable steps within a timely manner to address these issues based on the specific circumstances of each case.

JEREMY MAGGS: It seems the best advice, as we’ve discussed, is to enjoy the festivities while remaining vigilant and responsible so we can all return to work in 2025. Thank you, Sashin Naidoo, associate in employment law at Cliffe Dekker Hofmeyr, for your valuable insights.

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