Employer liability for bad behaviour at work functions
End-of-year work functions are a perennial risk for employers; unmanaged intoxication and revelry can quickly escalate into sexual-harassment claims, personal injury claims, unfair-dismissal disputes and, in extreme cases, vicarious liability for very serious criminal conduct. It is essential for employers to plan and act deliberately to reduce these risks when hosting end-of-year functions.
Work functions that are authorised by, or reasonably connected to, the employer can fall within the employer’s legal responsibilities:
Under Australia’s federal model WHS law and the corresponding state legislation, a person conducting a business or undertaking (PCBU) remains responsible for worker health and safety at work-related events, including social events where the employer organises or endorses attendance.
Employers may be vicariously liable for employees’ unlawful conduct (including sexual harassment or assault) where there is a sufficient connection between the wrong and the employment. Australian authorities have recognised that a private incident following a work event can still “arise out of” the employment if it is connected to an employment context or is the culmination of workplace conduct.
Employment law and unfair-dismissal frameworks require procedural fairness for disciplinary action arising from conduct at work functions. Australia’s workplace tribunal, the Fair Work Commission (FWC), will often...
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