HR Solutions, Managing the Christmas Period
Here is the Hot Topic for November 2025 and an accompanying webinar, will be held on 13 November 2025.
1. Introduction
The festive season is a time of celebration, but for managers, it can also blur the lines between cheer and compliance, presenting unique legal and HR challenges. As excitement builds, so too do the risks that are associated with everything from annual leave management to office party conduct.
In this article, we provide the clear, practical strategies you need to safely and successfully navigate the festive season, protecting both your employees and your business. We will explore:
· The legal risks of the festive office party
· Managing the office party and employer liability
· Navigating leave and staffing crises
· Proactively supporting employee wellbeing.
2. The Legal risks of the festive office party
The greatest risk during the festive season often stems from the legal liability attached to employee conduct at work-organised social events, this is particularly the case, where there has been a poorly managed office party both in the lead up, during and after the event, as we explain in this section.
Vicarious liability and discrimination claims
The office Christmas party, whether on or off-site is often deemed an extension of the workplace. This critical legal concept means the employer can be held vicariously liable for the actions of their staff. The most significant risk is a claim of harassment, sexual harassment or discrimination under the Equality Act 2010.
The Risk: If an employee harasses another colleague (including sexual harassment), which can be through acts of harassment, sexual harassment, inappropriate comments, or discriminatory remarks that are because of somebody’s age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation either during or immediately following the party, the victim can bring a claim against the individual and the employer.
The law – vicarious liability: Employers can be vicariously liable under the Equality Act 2010 for an act of discrimination committed by an employee even though they did not know about the acts of discrimination. The principle of vicarious liability means that the employer is legally responsible for the wrongful acts of their employee, provided the acts were committed "in the course of their employment." Case law confirms that a mandatory or optional work social event, even outside of normal business hours, falls under this umbrella.
Vicarious liability - the employer's defence (the "all reasonable steps" test): The employer's only defence against vicarious liability is to prove they took "all reasonable steps" to prevent the unlawful conduct. This is where the pre-party communication and having robust policies, and enforcing them, are critical. If you have not clearly communicated the standards of conduct, your defence is significantly weakened.
The law – discrimination: Under the Equality Act 2010, there are nine protected characteristics that are personal attributes which make it unlawful to discriminate against a person, either directly, indirectly, through harassment or victimisation.
Discrimination – can there be any justification? Except regarding the protected characteristic of age, discrimination can never be justified. Indirect discrimination, however, can be. To be lawful though, the employer must show that the provision, criteria or practice was a proportionate means of achieving a legitimate aim.
The law – sexual harassment: Sexual harassment is unlawful under the Equality Act 2010, but it can also be a criminal offence under the Protection from Harassment Act 1997. Under the Equality Act 2010, sexual harassment is a form of discrimination. The is a specific legal duty on employers to take reasonable steps in the prevention of sexual harassment during the course of employment.
Misconduct and fair dismissal claims
Actions taken at the party, even those that happen outside of the core event location or time can lead to disciplinary action, including dismissal. If that dismissal is mishandled, it can result in an unfair dismissal claim.
The risk: An employee is dismissed for gross misconduct (e.g., physical fighting, severe verbal abuse, or property damage) that occurred at the party. If that employee has over two years of service, they can currently bring a claim of unfair dismissal (although this qualifying service is set to be removed or changed under the Employment Rights Bill).
The standard: For the dismissal to be legally fair, the employer must demonstrate that:
• The dismissal must be for one of the statutory five reasons an employer may dismiss (conduct, capability, redundancy, breach of statutory restriction and some other substantial reason), i.e. they had a valid reason for dismissal (the misconduct).
• They acted reasonably in treating that reason as sufficient to dismiss the employee and the response was in the range of reasonable responses.
• They followed a fair procedure (as laid out in the ACAS Code of Practice).
The pitfall: Many employers fail on the procedure. A fair disciplinary process must still be followed, including a full and timely investigation, a disciplinary hearing, and the right to appeal, even if the misconduct was witnessed by management. Rushing to dismiss because the facts seem obvious is a common legal error.
Health & Safety and duty of care
Employers have a legal duty of care to ensure the health, safety, and welfare of their employees.
• The risk: An employee sustains an injury due to intoxication, poor event management, or violence that the company failed to prevent or manage (e.g., an unmonitored balcony, insufficient security, or inadequate management intervention during a physical altercation).
• The pitfall: While you cannot stop employees from drinking, your duty of care requires you to take reasonable steps to mitigate the risks associated with an event where alcohol is served. This includes providing food, ensuring water is available, controlling the flow of alcohol, and arranging or signposting safe transport options home. Failure to do so can expose the company to personal injury claims. This is why risk assessments are fundamental in the planning of any workplace event.
The festive party is legally complex, and employers must not treat it as a purely social event, but as a high-risk work activity requiring specific communication, control, and consistent disciplinary follow-up to protect the company from costly and damaging claims.
3. Managing the office party and employer liability
The annual office party is a cornerstone of celebration, but it's also a high-risk environment for misconduct, discrimination claims, and employer liability. Remember: the party is considered an extension of the workplace, regardless of the location.
Practical Strategies:
· Risk assessments: this activity is essential in managing and preventing risks associated with the festive period. Be sure to identify potential hazards shortly before the day and introduce any necessary measure to either remove or significantly reduce the risk identified. Ensure that you also carry out an assessment of risks in the prevention of sexual harassment, given the legal duty that is now in place for employers to do this.
· Pre-party communication: Send a clear, concise email before the event reminding all attendees that workplace standards of conduct, dignity, and respect still apply. Specifically mention policies against bullying, harassment, and discrimination. Use our template letter, available here.
· Person in charge: Ensure that someone in authority remains sober and able to take charge if necessary. Managers should be reminded that they are responsible for setting and upholding standards and should intervene if behaviour seems to be bordering on the unprofessional or unacceptable. If rowdiness or drunkenness occurs, take all practicable steps to contain the problem and if necessary, follow it up on the return to work, which may require disciplinary action.
· Responsible alcohol service: Ensure the bar offers a wide range of attractive non-alcoholic options and that the supply of alcohol is managed responsibly (e.g., limiting drink tokens or ending the open bar early).
· Safe travel home: Encourage employees to plan their journeys and encourage people to share lifts and non-drinking colleagues. If budget allows, arrange subsidised or provided transport options to prevent driving under the influence or dangerous travel.
· Post event follow-up: Handle any complaints or incidents that occur at the party swiftly and confidentially and follow your standard disciplinary procedures on return to work. Ignoring party misconduct is a fast track to a serious legal claim.
· Complaints: Be sure that your employees know how to raise concerns and if concerns are raised, handle these as quickly as possible and manage in line with your workplace procedures. Ideally and depending upon the nature of the complaint, these are best resolving informally. However, this isn’t; always possible or appropriate. Ensure that complaints are dealt with appropriately; informally or formally and in line with your grievance procedure, or if relevant, and you have a separate Bullying and Harassment Policy, this can be used.
4. Being an inclusive employer – recognising all employees
The "festive season" is often synonymous with Christmas, but a truly compliant and supportive business must adopt an inclusive mindset that respects the diverse beliefs and needs of its entire workforce. Failure to do so risks alienating staff and, critically, opens the door to indirect discrimination claims.
Recognising diverse faiths and celebrations
While Christmas is dominant, many employees may observe different holidays or no holiday at all. A one-size-fits-all approach to celebration and leave can exclude staff with the protected characteristics of religion or belief.
· Audit your calendar: Look beyond Christmas Day. Be aware of other major festivals in December and January (e.g., Hanukkah, Kwanzaa, New Year's Day for various cultures).
· Neutralise celebrations: If organising a workplace event, frame it as an "end-of-year celebration" or "staff appreciation event," rather than solely a "Christmas Party." This signals inclusivity.
· Acknowledge non-participants: Respect that some staff may not wish to participate in celebrations for religious, cultural, or personal reasons. Ensure their non-participation is never penalised (e.g., by missing out on crucial networking or information). For an in-office celebration, maintain a business as usual area where staff can continue working if they choose not to join the festivities.
Addressing dietary, cultural, and lifestyle needs
A mandatory event with food and drink can pose serious issues if not handled carefully, particularly concerning religion, health, and addiction.
· Alcohol is optional (and forbidden for some): For many, alcohol is forbidden due to religious belief (e.g., Islam) or personal health/recovery reasons. The emphasis on alcohol at a work event can create an uncomfortable or prohibitive environment.
o Always provide prominent, high-quality non-alcoholic options that are more appealing than water or soda.
o Managers must ensure no pressure is placed on anyone to drink or explain their reasons for abstinence.
· Dietary and allergen awareness: When ordering catering, go beyond basic vegetarian options. Explicitly request information on halal, kosher, vegan, and common allergens. Ensure food is clearly labelled to prevent cross-contamination and show respect for cultural and health requirements.
Remote staff inclusivity
In a modern workplace, inclusivity extends to physical location.
Inclusion of remote/hybrid staff and those on long term leave is critical. If your celebration is in-person, ensure remote employees, and those who are on long term leave are invited and don't feel excluded. Failing to inform employees on long term family leave of workplace events can be discriminatory.
Be mindful too of those who are on long term leave due to ill health, in fact, their own GP/medical professional may advise continuing to engage and connect with work colleagues is therapeutic and may be beneficial in their eventual return to work.
Consider sending a non-monetary recognition package (e.g., a catered lunch voucher, a gift hamper, or a small, personalised gift) to those who cannot attend due to distance or disability.
By embracing genuine inclusivity, your business demonstrates its commitment to the Equity, Diversity, and Inclusion (EDI) principles that underpin a positive and legally sound workplace year-round.
5. Navigating leave and staffing crises
The holiday period inevitably brings a surge of annual leave requests. Balancing operational needs with employee entitlement is a delicate but crucial task. A poorly managed leave policy can lead to resentment or, worse, a crippling staffing crisis.
Practical Strategies:
Establish a clear policy: Communicate your leave request deadline well in advance (e.g., "Requests for December must be submitted by November 10th"). Clearly outline how conflicting requests will be handled, for example, based on a first-come, first-served basis, departmental rotation, or seniority.
Encourage early booking: Proactively remind employees to book their time off and specify any "blackout" dates where minimum staffing is essential.
Fair refusal: If you must refuse a request, do so in writing, citing the business reason (e.g., "Essential coverage required under the established festive policy"). Offer alternative dates immediately.
Handle roll-over: Have a clear plan for employees who have accrued holiday they must use before the year end, preventing a last-minute mass exodus.
6. Proactively supporting employee wellbeing
The festive season can be a period of significant personal stress, leading to seasonal burnout and a drop in productivity. Managers have a critical role to play in proactively supporting employee wellbeing to maintain a supportive culture and mitigating performance issues.
Mitigate workload and holiday pressure
A key driver of festive stress is the combined pressure of deadlines before year-end, managing handover for time off, and high personal commitments.
· Be realistic about deadlines: Review workflows in late November and December. Challenge unnecessary deadlines and communicate to clients and stakeholders that operational capacity is reduced during the holiday period.
· Encourage disconnection: Managers must lead by example. Avoid sending non-urgent emails to staff during their evenings or while they are on annual leave. Clearly state that employees are not expected to check emails while off.
· Flexible working: Where operationally feasible, offer temporary flexibility. Allowing staff to shift start/finish times slightly can help them manage commitments like school plays, childcare, or increased medical appointments, showing trust and reducing friction.
Supporting employees with financial worries
The festive season brings substantial financial pressure, which can spill over into the workplace as distraction, anxiety, and performance issues.
1. Promote Employee Assistance Programs (EAPs): If your business has an EAP, now is the time to actively promote it. Highlight the specific services they offer, such as confidential financial counselling, debt advice, and budgeting support.
2. Financial literacy resources: Share reputable, professional sources of financial information to help employees manage their finances.
3. Early pay options (if feasible): Consider if it is feasible to process the December payroll a few days early. This small gesture is greatly appreciated and helps employees manage necessary early holiday expenses.
4. Financial sensitivity: Recognise that not all employees are financially comfortable during the holidays. Avoid mandatory donations/gift exchanges such as "Secret Santa" or charitable donation schemes, as these create financial pressure. Make participation entirely voluntary. Ensure any social event is fully paid for by the company, including basic travel/taxi subsidies, to remove any financial barrier to attendance.
Addressing relationship strain and isolation
The holidays can exacerbate existing difficulties, including loneliness for those without local family, or relationship strain for others dealing with complex family situations.
· Mental health first aid (MHFA): Ensure employees know who their MHFA contacts are (if applicable) and that these contacts are available for a confidential chat. Alternatively, signpost employees to external sources of professional and reputable providers of guidance on mental ill health.
· Foster positive connections: Organise inclusive, low-pressure social events that don't revolve solely around drinking. Consider a voluntary daytime holiday lunch, a coffee and cake break, or a structured volunteering event.
· Check-in culture: Encourage managers to hold brief, informal, and non-judgmental one-on-one check-ins with their team members, specifically asking, "How are you managing with the pace of things right now?" This creates a safe space for dialogue.
By prioritising these proactive measures, your business can turn the festive period from a source of stress into a demonstration of your commitment to employee care, ensuring staff enter the new year feeling supported rather than burnt out.