Merry Christmas – But Not Too Merry…

Workplace Safety

Under the Health and Safety in Employment Act, employers have an obligation to provide employees with a safe working environment.  This means that employers should take all practicable steps to ensure the safety of employees, clients and other visitors at work-related social events involving alcohol.  They should also ensure that employees are not working in an impaired state having attended social functions, to the extent that they are a danger to themselves and to the safety of their colleagues.

Risks for Employers - Work-Related Events

As these events are organised by their companies, employers have the ability to plan and manage the events to avoid (as far as practicable) the following potential risks associated with alcohol consumption:

• Employees driving while under the influence of alcohol;
• Employees suffering physical injuries resulting from pranks and possibly violence;
• Employees suffering from the effects of the over-indulgence of alcohol;
• Potential claims for sexual harassment, bullying and discrimination;
• Unruly abusive behaviour jeopardising existing or potential clients; and
• Concentration difficulties and fatigue the following morning if employees are still in an impaired state from the previous night's festivities.

To manage these risks, employers can take the following steps:

• Remind employees about the risks of substance and alcohol abuse at this time of the year;
• Provide taxi chits, nominate sober drivers or arrange for taxi vans/buses at certain times;
• Monitor the amount of alcohol consumed by employees and keep an eye out for anti-social behaviour;
• Limit the type of alcohol on offer (e.g. wine and beer only; no spirits);
• Ensure plenty of food is available;
• Ensure appropriate policies are in place (i.e. alcohol and substance abuse, sexual harassment and discrimination, violence in the workplace).

Risks for Employers – Non Work-Related Events

Although employers do not have any ability to control and/or manage non work-related events, they can control and monitor the extent to which their employees attend work under the influence of alcohol and/or mind-altering substances.  While these employees may not be inebriated to the extent they cannot perform their duties at all, they may still be suffering the after effects of the overindulgence of alcohol or the use of other substances, including having fatigue and difficulties with concentration. 

Potential risks associated with alcohol consumed at non work-related events include:

• Employees who operate machinery, particularly those in the manufacturing, transport, building and construction industries, are at a high risk of endangering themselves or their colleagues;
• Inappropriate behaviour which may bring the employer’s company into disrepute;
• The use of certain recreational drugs (if used often enough) can result in hallucinations, delusions and erratic (sometimes violent) behaviour; and
• General behavioural and performance-related issues associated with employees not meeting their professional obligations.

To manage these risks, employers should consider the following:

• Ensure appropriate policies are in place (i.e. alcohol and substance abuse, sexual harassment and discrimination, violence in the workplace);
• Have impairment testing systems in place, particularly in high risk worksites;
• Monitor workplace behaviour, be vigilant and take immediate action if the employee’s behaviour and/or actions could result in harm to themselves or to others in the workplace

Litigation risks that can result from over-indulgence and/or abuse of alcohol or other substances during work or non-work related activities over the festive season include personal grievance claims by other employees under the Employment Relations Act and prosecution under the Health and Safety in Employment Act. 

A responsible and well-prepared workplace approach to the festive season will ensure the New Year is welcomed in, rather than dreaded because of the threat of litigation (or possibly tragedy) arising from a “social” festive occasion that was far too merry...

For more information, please contact:

Erin Davies
Partner
t: +64 9 979 2177
m: +64 29 622 2300
e: Erin Davies

Stephen Corlett
Senior Associate
t: +64 9 979 2141
e: Stephen Corlett

Last updated: 6 December 2006

This article is intended to be brief in nature and should be used for information only. It should not be relied on as legal advice.