A visit from St Nicholas or an Employment Judge?

Keep your Christmas party merry, bright and out of the Employment Tribunal

By Sarah Buxton

A Christmas party can leave more than a sore head. Sarah Buxton shares practical employment law advice to help practice owners and managers prepare for celebrations everyone can enjoy.

'Twas the night before Christmas, when all through the practice, not a creature was stirring… except perhaps the practice manager, who was frantically reviewing the CCTV footage from the staff Christmas party.

Now, I am certainly no Scrooge. My festive stocking will be hung by the chimney with care, in the hope that St Nicholas will soon be there. I enjoy a glass of fizz, a festive celebration and the opportunity to reward hardworking employees as much as anyone.

However, as an employment solicitor, I also know that the annual Christmas party can turn from a celebration of goodwill into an employer's worst nightmare faster than you can say "another prosecco, please!"

Whilst Christmas parties are an excellent opportunity to boost morale, thank employees for their hard work and encourage team bonding, they can also provide the perfect ingredients for an employment law disaster.

Add a generous helping of alcohol, an ill-advised comment, an overly enthusiastic colleague and perhaps a sprig of mistletoe, and suddenly the employer may find themselves receiving something considerably less welcome than a Christmas card: an Employment Tribunal claim.

And with significant developments in employment law, employers have more reason than ever to ensure that their Christmas celebrations remain on the right side of the law.

So, before you dust off your Christmas jumper and order another round of cocktails, here are my top tips for avoiding a festive legal hangover.

1. He's making a list, he's checking it twice…

And so should you when sending out those Christmas party invitations.

It might seem obvious, but employers should ensure that all employees are invited to the Christmas party, including those who are absent on maternity leave, paternity leave, adoption leave or long-term sickness absence.

Excluding employees because they are absent from work could potentially give rise to allegations of discrimination.

Employers should also remember that Christmas is not celebrated by everyone. Whilst there is absolutely nothing wrong with organising a Christmas party, attendance should generally be voluntary, and employees should not be pressured into attending an event that conflicts with their religious or personal beliefs.

Consideration should also be given to accessibility, dietary requirements and the availability of non-alcoholic drinks.

A Christmas party should be an inclusive celebration, not an occasion that leaves some employees feeling like they have been placed on Santa's naughty list.

2. All I want for Christmas is… not to be sexually harassed!

This is where the law has become particularly important for employers.

Since 26 October 2024, employers have been under a specific legal duty to take reasonable steps to prevent sexual harassment of their employees in the course of employment.

This duty was introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2023.

Importantly, the duty is proactive.

Employers cannot simply wait until somebody complains about inappropriate behaviour and then investigate what happened. They must take reasonable steps to prevent sexual harassment from occurring in the first place.

And yes, this includes the Christmas party.

An employer-organised Christmas celebration can be sufficiently connected to employment for the employer to face liability for inappropriate conduct, even if the event takes place outside normal working hours and away from the workplace.

An unwanted kiss beneath the mistletoe, an inappropriate comment about somebody's appearance or unwelcome physical contact could amount to sexual harassment.

The fact that the individual responsible has consumed several glasses of mulled wine is unlikely to provide much comfort to the employer.

Neither is the familiar explanation that "it was only a joke".

The Employment Rights Act 2025 strengthened the preventative duty from 30th October 2026, requiring employers to take all reasonable steps to prevent sexual harassment.

Employers must therefore take their preventative obligations seriously.

Before the Christmas party, employers should:

• Review their sexual harassment and equality policies.

• Carry out a proportionate risk assessment of the event.

• Remind employees of expected standards of behaviour.

• Ensure managers understand how to respond to inappropriate conduct.

• Consider risks arising from alcohol consumption and interactions with third parties.

• Make sure employees know how to report concerns and that complaints will be handled appropriately.

  
  

Employers should also remember that the Equality and Human Rights Commission can take enforcement action in relation to the preventative duty.

Where an employee successfully brings a relevant sexual harassment claim, an Employment Tribunal may increase compensation by up to 25% if the employer has breached that duty.

Given that compensation for discrimination and harassment is generally uncapped, this could make for a very expensive Christmas party indeed.

My advice?

Leave the mistletoe at home. It is simply not worth the risk.

3. Christmas time, mistletoe and wine… but who is responsible?

One of the most common misconceptions I encounter is that employers believe their responsibilities end when employees leave the workplace.

Unfortunately, employment law does not necessarily work that way.

A Christmas party organised or funded by an employer may be considered an extension of the workplace for certain legal purposes.

This means employers can potentially be held vicariously liable for acts of discrimination or harassment committed by employees where there is a sufficiently close connection with their employment.

The fact that the incident happened in a restaurant, hotel or bar does not automatically absolve the employer of responsibility.

However, not every incident involving colleagues outside working hours will be treated as occurring in the course of employment. The circumstances and connection to work are important.

In Bellman v Northampton Recruitment Ltd [2018], the Court of Appeal considered an incident in which a managing director assaulted an employee following a Christmas party.

The assault occurred during an impromptu gathering after the organised event, but the Court found the employer vicariously liable because of the particular circumstances, including the managing director's assertion of his authority.

The lesson?

What happens at the Christmas party does not necessarily stay at the Christmas party.

Employers should make it clear beforehand that the same standards of professional conduct apply at work-related social events.

And if an incident does occur, employers should ensure that complaints are investigated promptly, fairly and in accordance with their disciplinary and grievance procedures.

4. Oh yes he did! Oh no he didn't!

Beware the Christmas party promises.

Picture the scene.

The practice owner has enjoyed a few glasses of champagne and is feeling particularly generous.

An employee approaches and asks about that long-awaited pay rise.

"Don't worry," says the employer. "You're doing a fantastic job. I'll sort you out in the New Year!"

Fast-forward to January.

The employee expects a pay rise. The employer remembers very little about the conversation.

Suddenly, the festive goodwill has disappeared.

Although not every casual remark at a Christmas party will create a legally binding contractual obligation, employers should exercise caution when discussing promotions, bonuses, pay rises or changes to contractual terms.

Whether a promise is enforceable will depend on the particular circumstances, including the words used, the parties' intentions and whether the essential terms are sufficiently certain.

My advice is simple.

Enjoy the party, thank your employees for their hard work, but leave discussions about contractual changes until everyone is back in the office and the champagne has worn off.

5. Driving home for Christmas

Employers should also give some thought to how employees will get home safely after the celebrations.

There is not a blanket legal obligation to provide transport home for every employee attending a Christmas party.

However, employers should take proportionate steps to manage foreseeable risks associated with an event they have organised.

Where alcohol is being served, consider providing details of local taxi companies, arranging transport where appropriate or ensuring employees are aware of public transport options.

It is also sensible to discourage excessive alcohol consumption and make non-alcoholic alternatives readily available.

Employers should be particularly mindful where an employee appears vulnerable or unable to make safe arrangements to travel home.

And remember, the consumption of alcohol does not excuse violent, threatening or discriminatory behaviour.

Depending on the circumstances, serious misconduct occurring at or following a work-related social event may justify disciplinary action, potentially including dismissal.

However, employers should not assume that dismissal is automatically justified simply because an incident occurred after the Christmas party. A fair investigation, consideration of the circumstances and a proportionate disciplinary process remain essential.

6. The Nightmare Before Christmas… or the morning after!

We have all encountered that employee who enthusiastically embraces the Christmas spirit, only to discover the following morning that the spirit has rather enthusiastically embraced them back.

The result?

A telephone call explaining that they are too unwell to attend work.

Employers should remind employees before the event that normal attendance and sickness reporting procedures continue to apply.

An employee who is genuinely unfit for work should follow the usual sickness absence process.

However, where there is evidence that an employee has breached workplace rules or dishonestly reported an absence, the employer may consider disciplinary action following an appropriate investigation.

Employers should be cautious about automatically treating every absence following a Christmas party as misconduct.

The fact that an employee attended the party the previous evening does not necessarily establish that their subsequent sickness absence is dishonest.

As with most employment law matters, the key is to investigate, follow a fair process and avoid jumping to conclusions.

And perhaps, where operationally possible, consider scheduling the Christmas party on an evening when employees are not expected to start work at 8am the following morning!

7. Santa Claus is coming to town… And so is the Employment Rights Act

Christmas 2026 comes against the backdrop of significant changes to employment law.

The Employment Rights Act 2025 strengthens the legal framework surrounding workplace protections, including sexual harassment.

Of particular relevance to employers organising festive events are the enhanced preventative obligations relating to sexual harassment and the protections against harassment by third parties, both of which took effect on 30th October 2026.

Third parties might include patients, customers, suppliers or other individuals attending work-related events.

For dental practices, this is particularly relevant where Christmas celebrations involve associates, suppliers or other external guests.

Employers should therefore ensure that their approach to preventing harassment extends beyond the conduct of their direct employees.

The precise legal obligations will depend on which provisions have commenced at the time of the event, but the direction of travel is clear: employers are increasingly expected to anticipate workplace risks rather than simply react after something has gone wrong.

A sensible employer will not wait for an Employment Tribunal claim before reviewing their policies, training and preventative measures.

After all, prevention is considerably cheaper than litigation.

8. Have yourself a merry little Christmas… Without an Employment Tribunal claim

Despite all these warnings, I am certainly not suggesting that employers cancel their Christmas parties.

Far from it.

Christmas celebrations can be fantastic for team morale, particularly in busy dental practices where employees have worked hard throughout the year.

The aim is not to take the fun out of Christmas but to ensure that everyone can enjoy themselves in a safe, respectful and inclusive environment.

My Christmas checklist for employers is straightforward:

Before the party: Ensure everyone is invited, consider accessibility and dietary requirements, review your policies, assess the risks and remind employees of acceptable behaviour.

During the party: Encourage responsible alcohol consumption, ensure managers lead by example and address inappropriate behaviour promptly.

After the party: Deal with complaints seriously, investigate incidents fairly and apply workplace policies consistently.

Above all, remember that the employer's responsibility for maintaining appropriate workplace standards does not simply disappear because somebody has put on a paper crown and started singing Mariah Carey.

So, as the festive season approaches, I hope your Christmas party is filled with laughter, goodwill and perhaps a little questionable dancing.

Just make sure the only person making an unexpected appearance is Father Christmas. Not an Employment Judge.

Enjoy the celebrations with confidence

If this article has raised questions about your Christmas plans, we can help you review your arrangements and put a Christmas party conduct policy in place.

For support throughout the year, our Oracle HR & Employment Law Service offers practical advice shaped around your practice.

Call 0330 088 2275 or email info@buxtoncoates.com to explore how we can help.