11 December 2008
Source: Article by Maria Saraceni and Lucy Bocheneck of Deacons, Australia

It’s that time of the season – Christmas parties are upon us. Christmas parties provide staff and clients with a great opportunity to interact in a relaxed social environment without the constraints of work. Businesses often put a lot of time and expense into these events to make it a memorable occasion.

But beware – the Christmas party can be a legal minefield!

Sexual harassment claims are common following end of year celebrations and businesses are increasingly being held liable for the actions of their employees if they cannot establish that they have taken reasonable steps to prevent harassment occurring irrespective of whether it occurs at the workplace or off site. Reasonable steps mean pro-active, preventative measures. Lack of awareness that the harassment was occurring is not in itself a defence.

Employer’s liability also extends to the serving of alcohol. Just as restaurants and bars are not allowed to serve drunk people, nor are employers. Occupational safety and health legislation requires employers make provisions for the safety of their employees, and this obligation doesn’t stop at the work Christmas party.

The responsibility of the employer extends to ensuring that staff return home safely, after having hosted a work function at which large amounts of alcohol are served. This responsibility is heightened at Christmas time where taxis are scarce, queues are long, people are tired and frustrated and situations can boil over quickly.

Claims under the Sex Discrimination Act 1984 (Cth) or the Equal Opportunity Act 1984 (WA) can be very costly for a business. In addition, the emotional and financial toll of having key employees embroiled in litigation is also a concern, not to mention the possibility of unfavourable media attention.

So what is sexual harassment then? Sexual harassment is unwelcome conduct of a sexual nature which would reasonably be expected to offend or humiliate a person. Sexual harassment can be a one-off event and is not limited to the actual workplace – it can take place at work functions. One employee getting a little too merry at the work Christmas party is sufficient to get you into a lot of trouble. However, mutual, invited or reciprocated sexual interaction, flirtation, attraction or friendship between colleagues is not sexual harassment.

Some examples of sexual harassment include:

As an employer, what should you do?

You should:

Is there anything you should not do?
Do not assume you are immune from a complaint. Your staff will not write off inappropriate or harassing behaviour as a “one-off” due to excessive alcohol consumption or “because it’s Christmas”. Businesses need to ensure that all staff are made aware of what is expected of them and what will and will not be tolerated.

A general awareness of anything in the nature of a complaint, even if not reduced to writing, is sufficient for an employer to take action.

Is it worth all the effort?
In an increasingly litigious work environment, some employers may be tempted to cancel their celebratory event because they believe it may not be worth the effort. It still is, but a few simple precautions will ensure that you can approach the New Year with a sense of hope, not trepidation.