When festive cheer turns sour…

But is what employees get up to underneath the mistletoe any business of an employer? And how should you react, faced with evidence of fighting, allegations of sexual harassment, or other unacceptable behaviour at your staff Christmas party?

A recent tribunal case illustrates how things can go wrong. Mr Grimshaw was walking home after his work Christmas party with two colleagues. An argument arose during which Mr Grimshaw punched one of them in the face, causing significant injury. Having investigated the incident, the employer dismissed Mr Grimshaw for gross misconduct, issued a final written warning to one of the others, and found the third (the victim) to be innocent of any wrong doing.

Mr Grimshaw brought a tribunal claim, arguing that because the incident was outside work it was nothing to do with his employer, and furthermore that the employer had acted inconsistently by not dismissing the other two. The tribunal found that the incident was sufficiently closely connected to work to warrant action by the employer; that the employer had acted reasonably given its belief that Mr Grimshaw had assaulted his colleague without any provocation; and that as Mr Grimshaw’s behaviour had been worse than that of the other two, it was reasonable to punish him more severely.

What goes on at or after an office party is indeed an employer’s business, on account of the doctrine of vicarious liability. Basically, you are liable for acts committed by your employees in the course of their employment, unless you can show that you took reasonable steps to prevent those acts. Social events organised by an employer can count as “in the course of employment”, which means that employees’ behaviour must be subject to your scrutiny.

You will need to be particularly careful, if you are providing alcohol at your Christmas party, not to be seen to be encouraging bad behaviour. So, a limited amount of complimentary wine with a meal may be fine, but a “free bar” all night is generally a bad idea. Remind your to staff that, while you want them to have fun, that does not mean they have unfettered license to behave badly. You don’t wish to be a party pooper, but as an employer you can’t afford to turn a blind eye to violence or inappropriate sexual behaviour at any event you organise.

But be careful not to jump to conclusions; you will still need to carry out a proper investigation and follow the correct procedures. I remember years ago receiving a phone call from a senior manager who had witnessed one of his own staff attacking the manager of a rival organisation in the street after the office party. He was furious and wanted to dismiss the employee on the spot. I advised him to take a deep breath and follow the usual disciplinary procedures. The outcome might well be the same, but the correct procedures were necessary to ensure there could be no legal come back on the company. As it turned out, the person acknowledged he'd been out of order and did not even appeal against his dismissal.

I wish you all a very Merry and peaceful Christmas and a wonderful 2013.