Planning a staff outing for your employees soon? There are some things you might be better off not including in the invitation.
After all, as an employer, you may be held liable for any damage suffered or caused by an employee during a company outing, unless the damage is the result of wilful misconduct or deliberate recklessness on the part of the employee. You must also ensure the safety of your employees.
Compulsory participation
As an employer, you may, for example, be held liable if employees are required to take part in a company outing. For instance, if the invitation states that it is a team-building activity, this can easily be regarded as a compulsory company outing and may therefore give rise to liability.
Another factor to consider regarding compulsory attendance is the venue of the outing. If the outing takes place on the company’s premises, it is more likely to be regarded as compulsory attendance from a legal perspective than if it takes place in a restaurant (i.e. off the company’s premises). This also applies if the outing takes place during working hours or if all employees are allowed to finish work early on the day of the outing.
Roller skating
For example, in a case involving a company outing during which employees went roller-skating on the company’s premises, the Supreme Court ruled that the employer was liable for the injury sustained by an employee during the event.
In this case, the employer had organised a roller-skating workshop on Friday afternoon. The workshop was work-related, as it was an activity held in the hall of the employer’s business premises and organised by the employer.
The employer had failed to put adequate safety measures in place, with the result that an employee broke her wrist whilst carrying out her work. The employer was ultimately held liable for the employee’s injuries.
Fire
As well as being liable for any injury an employee may sustain during a company outing, you, as an employer, may also be held liable for damage caused by employees during such an outing. Consider, for example, an employee who causes damage to someone else’s property during the outing.
For example, there was an employer who had organised a party for all employees at a party venue. However, the employees had thrown lamp oil onto a barbecue grill that was still hot, causing a fire that completely gutted the party centre. This was also a party organised by the employer, and the outing had once again been organised to foster team spirit within the company. The court ultimately ruled that the employer had to compensate for the damage caused by the employees.
Prevention
To avoid having to pay compensation as an employer, it is advisable to draw up a policy governing participation in company outings and social gatherings, setting out what is expected of employees during these activities. You could also stipulate that supervision must be provided during the company outing. And you can include in the policy what will happen if employees fail to comply with these rules. Depending on the seriousness of the employee’s conduct, this could even result in dismissal.