Edited by
David Law
In planning your annual holiday party, have you considered your obligations as an employer? A company holiday party should be fun, but employers need to be careful about social host liability.
A "company party" is generally defined as any party that is:
- Hosted, organized and/or paid for by the employer;
- Held on company property;
- Held during normal working hours; or
- Seen to be facilitated or condoned by the employer;
- Any combination of the above.
If an event is deemed a "company party," the employer could be held liable if injury is caused to any party participant or a party participant harms an innocent third party (e.g. has an accident on the way home). This is true even if no members of "management" are in attendance or it's not an official company party.
The keys to avoiding liability are:
- Set rules
- Communicate them to attendees
- Actually enforce them
Additional measures that are wise to take include:
- Limiting the number of free alcoholic drinks offered to guests
- Not limiting the number of cab chits
A holiday party can still be fun, while being low risk for your organization.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
