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* The interview starts at the 1:25 mark.

JEREMY MAGGS: As we near the year’s end, numerous organizations are likely preparing for their year-end celebrations. However, these festivities can introduce various challenges, from liability issues to regulating workplace conduct; employers need to remain vigilant.

Today, I welcome Sashin Naidoo, an associate focusing on employment law at Cliffe Dekker Hofmeyr, to discuss the legal factors employers need to consider during year-end functions. Thank you for joining us, Sashin. What are the key legal concerns employers should keep in mind for these events?

SASHIN NAIDOO: Jeremy, employee behavior is certainly a critical concern during workplace events. These gatherings often serve as a chance to celebrate the past year and usually involve a significant amount of alcohol consumption.

Employees may exhibit behaviors that some could find inappropriate, which understandably raises concerns for many employers during this holiday season.

JEREMY MAGGS: Should employers be rigorously enforcing workplace behavioral standards, particularly at offsite events? It seems essential to strike a balance between fun and professionalism.

SASHIN NAIDOO: Definitely. It’s vital for employees to understand that professionalism remains essential during any workplace-related activity. Employers’ codes of conduct and disciplinary procedures must be strictly followed, as year-end functions do not provide a loophole for disregarding these expectations.

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JEREMY MAGGS: Is it fair to say that serving alcohol at work functions complicates liability issues, particularly regarding possible misconduct or accidents?

SASHIN NAIDOO: Absolutely. In addition to the health and safety risks linked with alcohol consumption, the employer may also be held legally accountable for any damages or incidents that arise from an employee’s conduct linked to the work event.

This doesn’t imply that every incident will result in claims against the employer for an employee’s misconduct; however, a clear connection to the workplace event can create complications and potential legal liabilities.

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JEREMY MAGGS: To handle this effectively, would it be wise for companies to set clear guidelines regarding year-end functions and outline the repercussions for violating those guidelines?

SASHIN NAIDOO: Precisely. Employers can take several steps to reduce risks for both the business and their employees. An effective starting point is educating employees about expected behaviors, especially during offsite events where there is a higher potential for reputational damage—both for the individual and the employer.

This education should not be limited to the holiday season but should be continuous throughout the year to reinforce the expected standard of conduct.

As we approach the year-end, employers should also remind staff of the consequences of inappropriate conduct during these events.

Moreover, to mitigate risks during these events, implementing specific measures could be advantageous. One effective tactic might involve limiting the number of alcoholic beverages each employee may consume. There are various creative ways to accomplish this.

Drink vouchers

Issuing drink vouchers or tickets is an effective way to control consumption, and informing bartenders or servers to refuse service to anyone who appears intoxicated can also help. Additionally, arranging transportation to and from the event can reduce employer liability. Employees might be required to acknowledge their responsibility for any damages that occur during these gatherings.

Furthermore, management must be involved; they should clearly understand company policies regarding alcohol and substance abuse and their responsibilities if one of their subordinates behaves inappropriately.

JEREMY MAGGS: Lastly, while our discussion has focused on alcohol-related issues, such situations often lead to harassment or other forms of inappropriate conduct at these events. What quick actions should a company take if allegations of such behavior arise?

SASHIN NAIDOO: The company’s immediate priority should be to investigate any claims of sexual harassment. It’s crucial to recognize that sexual harassment is a form of discrimination which could lead to liability under the principle of vicarious liability, holding the employer responsible for employee actions.

In the event of discrimination claims, particularly regarding sexual harassment, employers are obliged to conduct thorough and prompt investigations. They also have a responsibility to eliminate all forms of harassment and to support individuals who report such incidents.

Employers must take all reasonable steps promptly to address these matters, tailored to the specifics of each case.

JEREMY MAGGS: It appears that the best advice, as we’ve discussed, is to partake in the celebrations while remaining alert and responsible so that we can all return to work in 2025. Thank you, Sashin Naidoo, associate in employment law at Cliffe Dekker Hofmeyr, for your insightful contributions.

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