Recent research by employment law consultancy Peninsula BusinessWise suggests 90 per cent of bosses are considering cancelling the staff Christmas party for fear of tribunal claims arising from bad behaviour. Tom Whitney outlines eight things you can do to protect your company without dampening your employees’ festive cheer.

1.  Understand the law
By law, businesses can be held responsible for their employees’ behaviour – even at a work event outside normal working hours. If an employee behaves badly towards a colleague – such as making offensive remarks, sexual overtures or being physically aggressive – your company could be liable for distress or injuries caused.

2. Get your workplace policies in order
Unless you have policies and procedures in place which cover discipline and grievance, bullying and harassment, and discrimination, you could find yourself representing your company at an employment tribunal and facing unlimited compensation claims.

3. Create a ‘party policy’
Setting a ‘party policy’ will help you avoid legal problems later on by demonstrating that you have taken steps to avoid mishaps. “Remind employees of how they are expected to behave, that they should treat each other with respect and not consume too much alcohol,” advises Paul Johnstone, employment partner at law firm Robert Muckle. “It’s also a good idea to warn staff that misbehaviour at a work party is a disciplinary offence.”

4. Conduct a risk assessment
Encourage managers to carry out a risk assessment to identify potential hazards. This could involve inspecting the venue to plan for drunken slips and trips; considering the safety of people going home after the event; or even identifying any potential conflict between employees so that table plans can be organised accordingly.

5. Avoid contentious subjects at the party
Advise managers to avoid discussing promotion, career prospects or salaries with employees who may use the convivial situation to discuss matters that are more suited to a formal appraisal or private meeting; any promises made at the party could turn out to be contractually binding.

6. Keep free booze to a minimum
“If you are supplying the alcohol, or encouraging its consumption, you may be legally responsible for the welfare of employees if they suffer from drink-induced disasters – even if they occur outside the party itself,” warns Croner Consulting’s employment services director, Richard Smith. “Limit the number of free drinks and be prepared to ask individuals to take it easy if they appear the worse for wear. Remind them that alcohol will not be considered as an excuse for inappropriate conduct.”

7. Make sure everyone gets home safely
Ensure transport is available after the party and that nobody drives after drinking. Consider hiring a minibus for the end of the night, or providing the numbers of local taxi firms to demonstrate that reasonable steps have been taken to minimise the risk.

8. Be kind the next day
Go easy on staff who come into work with a hangover the morning after or arrive late (and be prepared to deal appropriately with people who don’t turn up at all). Bear in mind they may not be fully sober and, if there is a safety risk, give them alternative work until they are fit to resume their normal tasks. You might even consider offering orange juice, coffee and croissants to help perk them up.

• For more information on health and safety risk assessments visit the Risk management section of the Health and Safety Executive website