Employment law outlook

Citation

Pitt, M. (2006), "Employment law outlook", Human Resource Management International Digest, Vol. 14 No. 7. https://doi.org/10.1108/hrmid.2006.04414gab.001

Employment law outlook

Mike Pitt employment-law partner at UK solicitor Pearson Hinchliffe, examines the key issues for employers and employees involved in working from home.

Eat, drink and be merry may be a fine recipe for a family Christmas party, but the annual works “do” needs a different set of rules.

An organization’s Christmas party – wherever and whenever it takes place – is now seen in the eyes of the law as an extended version of the workplace. So any behavior that would be ruled out in the office or on the factory floor is also inappropriate at the festive get-together.

We are not at the stage where alcohol should be banned or invitations printed with a disclaimer of liability on the part of the employer. But the days of the drunken free-for-all, where the boss told dirty jokes and the office lecher dragged the secretaries under the mistletoe, are gone for good.

Employers are likely to be liable for any acts of sexual harassment on members of staff, whether committed by other employees or invited guests. There is no maximum compensation level for sexual harassment. Awards for injury to feelings can reach five figures. But employers do have a defense to claims of sexual harassment if they have taken reasonable steps to prevent it. I therefore advise employers to:

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  remind everyone before the party about the organization’s expectations regarding their behavior;

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  designate someone who is responsible for monitoring the activities of revelers and defusing any potentially difficult situations;

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  tell staff who is performing this task and that any problems arising during the party can be reported to him or her;

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  control the amount of free alcohol available – without, of course, appearing to be frugal; and

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  ensure that inappropriate behavior is linked to the organization’s informal and formal disciplinary and grievance procedures.

There are other potential pitfalls for employers organizing a Christmas get-together. If you are providing entertainment, make sure that your employees will not view it as offensive. Ensure that the time and place of the event do not prevent any employees from attending on religious or racial grounds. Be certain that any handicapped employees can make it to the venue and get round the arrangement of tables and chairs. Finally, warn employees against discussing sensitive company business with outsiders. No organization wants to start the new year with its trade secrets exposed or a potential deal in tatters.

Another potential peril of the festive period centers on the giving and receiving of gifts. The calendar that hangs on my office wall was a gift last Christmas from a valued client. So was the logo-emblazoned mug from which I sip my coffee while writing this article. And, come to think of it, so too were my mouse mat, diary and favorite ball-point pen.

I cannot consciously claim to have been affected by any of the advertising they carry, but I suppose that I have been subliminally absorbing their various messages over the last 12 months – that company X’s printing services offer “quality and value”, company Y will seek out the best insurance quote for my car and company Z offers “expert computer servicing”.

There can hardly be a workplace in the country that is not littered with similar Christmas gifts from current or prospective customers or suppliers. But when does a Christmas gift become a bribe?

Part of the answer, of course, lies in the person targeted. Public-sector employees tend to be subject to much stricter rules about accepting gifts than those in the private sector. And the more influence an employee has over his or her organization’s purchasing, the more careful he or she should be about accepting Christmas gifts from current or potential suppliers.

Another important factor is the value of the gift. While few private-sector employers would oppose an employee accepting a bottle of whisky or tin of biscuits, what about a case of champagne or a pair of match-day tickets to a top sports team’s corporate-hospitality suite? A gift that is a bit too generous can easily impose an obligation and that can start to slide into something damaging.

Some organizations forbid the acceptance of any gifts or corporate hospitality. Others turn a blind eye to everything. Among the options in between, some organizations insist that all gifts be declared, or be pooled and raffled for charity.

Another approach is to lay down rules about the maximum value of gifts that it is appropriate to accept. For private companies, I advise a top limit of £50. This allows satisfied clients to express their gratitude and suppliers to “oil the wheels” of commerce, while also letting people know what is and what is not acceptable before the event.

As the old saying goes, 10 percent of us are devils, 10 percent are angels and the other 80 percent can be swayed either way.