22 December 2016

…but can employers be liable for the actions of employees at work social events? With the festive season firmly upon us, the English High Court has provided a useful and timely reminder about who will be liable for inappropriate behaviour by employees at or following work social events.

In Bellman v Northampton Recruitment, M was the Managing Director of NR Ltd and shareholder of the Company. After the employer’s Christmas party at a golf club, a number of staff (including M and the Claimant, B) returned to a nearby hotel and continued the party into the early hours. This was not a planned extension of the party, albeit the majority of the Christmas party guests did go back to the hotel, and the taxis, as well as some of the alcohol which was consumed at the hotel, were also paid for by the Company.

A heated discussion arose about a work matter between M and B and M lost his temper. This took place in the presence of employees in the hotel bar area and resulted in M assaulting B. B was punched twice and knocked to the floor unconscious. As a result, he hit his head and suffered brain damage. B subsequently raised proceedings in the High Court against NR Ltd, asserting that it was vicariously liable for M’s conduct. B asserted that the post event drinks were a seamless extension of the Christmas party, that the heated discussion had been in relation to work topics and M had been trying to assert his authority, which was in the course of and closely connected to employment. B did not bring proceedings against M personally. The question for the Court was whether the employer was vicariously liable for the injuries that were sustained.

The Court considered the authorities in this area and rejected the claim. It held that it is difficult to identify the boundaries of this form of liability. It decided that a line could be drawn in this case between the Christmas party at the golf club and the continuation of the party at the hotel. Had the assault taken place during the Christmas party, the employer would have been liable because there would have been a sufficient connection with M’s employment and the assault. As it happened after the event had finished, the claim was dismissed. Although the assault happened as a result of discussions relating to work-related matters, that only had a limited impact on the question of liability.

The case gave rise to questions of delictual liability rather than strict employment law, but the judgment is an important reminder of the extent to which employers can be held liable for actions of employees. It provides a useful analysis of the law in this area and reminds us that liability does not automatically end when working hours cease.

As we are in the midst of the party season, it is prudent for employers to take steps to limit any potential exposure to liability. This can include:

• Informing staff that any continuation to the Christmas party, is not a work event
• Issuing or re-circulating a code of conduct and equal opportunities policy to staff prior to the social event taking place and ensuring that they have received sufficient training in relation to diversity, equal opportunities and anti-discrimination
• Where there is violence, take disciplinary action.

Taking such steps may help in limiting liability on the employer, in the event that a claim arises because of conduct occurring at or after a social event.

See judgment here and click here for further discussion by Associate Douglas Strang on planning a happy holiday season. Enjoy your festive parties with care!

Contacts
Laura Salmond, Partner, lis@bto.co.uk, T: 0141 221 8012
Lesley Grant, Associate, ljg@bto.co.uk, T: 0141 221 8012