Festive fun without the legal fallout

Christmas Party Employment Law Guide 2025

With the festive season in full swing, many organisations will be preparing for their annual Christmas party. These gatherings offer a welcome chance to relax, recognise hard work, and lift team spirits after a busy year. At the same time, work Christmas parties can make it harder to distinguish between workplace professionalism and social interaction.

Social gathering or an Extension of the Workplace?

Christmas parties are legally considered to be “in the course of employment.” That is, Christmas parties are viewed an extension of the workplace.

This means that any of your usual work policies – such as those on bullying, harassment, or social media use – all apply during the Christmas night out, no matter how late the festivities might run.

Therefore, employers must be keenly aware that incidents occurring during the work Christmas night out, even off site, will be considered to have happened in the course of employment and must be acted upon accordingly.

By way of example, the 2018 case of Bellman v Northampton Recruitment Ltd set out that despite the incident happening at a separate location once the official work party had finished, the court concluded that the managing director was still acting in his professional role, specifically by asserting authority over staff during a work‑related discussion. That link between his position and the misconduct was enough to make the company legally responsible for his actions.

Failure to Prevent Sexual Harassment

Furthermore, since October 2024, the Worker Protection (Amendment of Equality Act 2010) Act 2023 has introduced a new, mandatory duty on employers to take “reasonable steps” to prevent sexual harassment of employees in the course of their employment (Equality Act 2010 s.40A).

“Sexual harassment” means unwanted conduct of a sexual nature as defined by s.26(2) of the Equality Act 2010.

Importantly, this duty is anticipatory; employers must act to prevent harassment before it occurs, not simply respond after an incident. The new duty applies to harassment by colleagues and also by third parties, such as customers or clients, during work-related events like Christmas parties and other  events outside office hours.

Enforcement of this duty is primarily by the Equality and Human Rights Commission (EHRC). Employment tribunals cannot hear standalone claims for breach of the duty. However, if an employee successfully claims sexual harassment and the employer is found to have breached the preventative duty, tribunals can uplift compensation by up to 25%

Proactive steps employers should take to ensure compliance with the recent Regulations include:

• Conducting risk assessments before events
• Circulating policy reminders (harassment, bullying, social media use)
• Providing staff training on expected standards of behaviour
• Briefing managers to lead by example and intervene if necessary

Dealing with Issues if they do arise – Disciplinary & Grievance

Even with the best preparation, incidents can still occur during Christmas parties. When they do, employers must respond swiftly, fairly, and confidentially. Complaints should never be dismissed as “just party behaviour”. As above, tribunals have consistently confirmed that misconduct at work‑related social events is treated as workplace conduct and require to be fully investigated in line with the employer’s own policies.

Key steps for employers:

• Whether raised formally or informally, every concern should be acknowledged and investigated where appropriate in line with the employer’s own policies.
• Begin fact‑finding as soon as possible, interviewing witnesses and reviewing any relevant evidence (such as social media posts or venue reports).
• Apply disciplinary and grievance policies consistently, ensuring due process and fairness to all parties involved.
• Protect the privacy of those involved to avoid gossip, reputational harm, or further distress.
• Offer access to HR, employee assistance programmes, or external support services where appropriate.
• Responses should reflect the seriousness of the incident, ranging from informal warnings to formal disciplinary action, up to dismissal in severe cases.
• Employers should ensure that they learn from any incidents that do arise and reinforce workplace culture, update policies, and improve preventative measures for future events.

Failure to act decisively can expose employers to liability.. Beyond legal risk, mishandling complaints can damage morale, trust, and the organisation’s reputation. A clear, consistent, and proactive approach ensures that issues are resolved fairly and that staff feel protected and respected.

Employer Action Checklist

1. Conduct a Risk Assessment (including both employee-to-employee and third-party harassment scenarios, are required under the new Regulations)
2. Communicate Policies Clearly (in particular your equality, dignity at work, anti‑harassment, and social media policies)
3. Engage and Train Staff (including refreshers on harassment prevention and reporting procedures)
4. Ensure Manager Leadership (and consider nominating HR or trained managers to be present and contactable during the event).
5. Provide Safe and Inclusive Options (including non-alcoholic drinks and safe transport home)
6. Address Third‑Party Harassment
7. Handle Complaints Promptly
8. Monitor and Evaluate Afterwards

Key Takeaways

Christmas parties are a valuable way to celebrate success and strengthen workplace culture, but they also carry legal and reputational risks if not managed carefully. Employers must remember that festive gatherings are viewed as an extension of the workplace, meaning workplace policies apply throughout. With the Worker Protection (Amendment of Equality Act 2010) Act 2023 now in force, organisations have a proactive duty to prevent sexual harassment (including by third parties) or risk increased tribunal awards. By planning ahead, reinforcing policies, and handling complaints swiftly, employers can ensure celebrations remain safe, inclusive, and positive for everyone.

With support from our Employment Law specialists, you can put the right policies, risk assessments, and training in place to enjoy the festive season without the legal headaches. Contact us with your details here or call 0141 225 5291.

Kimberley Green, Solicitor: kgr@bto.co.uk / 0141 221 8012

Natalie Boal, Trainee Solicitor: nbo@bto.co.uk / 0141 221 8012