Work Christmas party 2026: what is the employer liable for?

The table is booked for twelve. Nine of you, two partners and the client who has been with you since the start. Somebody has asked whether there's a tab behind the bar.

And somewhere at the back of your mind: what if something happens?

The short answer: a work Christmas party is likely to count as work, so harassment or discrimination there can land with you as the employer. Since 30 October 2026 you have to take all reasonable steps to prevent sexual harassment of your staff. You can also be liable if a third party harasses them and you hadn't taken all reasonable steps to prevent it. At a party that means venue staff, other guests, clients and partners. You don't need to cancel anything. For a small team the steps are a short note before the party, ten minutes thinking about the risks, one person who stays in charge on the night and acting the same day if someone tells you something happened.

The quick version:

the party counts as work and so can the drinks afterwards
send a short note a week before: what's expected and who to tell if something isn't right
think through the drink, the journey home and who else will be in the room
ask one senior person to stay clear-headed and step in early
if someone reports something, act that day. Don't leave it until January
behaviour at the party can be a disciplinary matter, with the same fair process as anything else
decide now what happens the morning after and tell people

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Does the Christmas party count as work?

Usually, yes. Under section 109 of the Equality Act 2010, harassment or discrimination by one of your staff "in the course of employment" is treated as also done by you. It doesn't matter whether you knew about it or approved of it. And that phrase reaches further than the working day.

The Equality and Human Rights Commission's technical guidance gives an example. A worker is harassed by a colleague twice: once over drinks in the pub straight after work and once at a leaving party. Nobody was working at the time. The tribunal still decided both were closely connected with the job, so both counted.

So a party you organised and paid for, with the team invited as the team, will almost always count. Later, when half the group moves on somewhere else, it is less clear. It depends on how strong the connection with work still is and a tribunal decides that case by case.

One case shows how far it can stretch. It was a personal injury claim, which is a different area of law, but the court asked the same kind of question about the connection with work. In Bellman v Northampton Recruitment, the company's Christmas party had ended and a smaller group carried on drinking at a hotel. In the early hours the talk turned to work, the managing director was challenged about a decision and he started lecturing everyone on who was in charge. Then he punched a sales manager. The Court of Appeal held the company liable for the injury. The judges called the facts unusual and said an argument about work between colleagues isn't enough on its own. But the company's responsibility didn't end when the party did.

If one of your staff harasses another, your defence is that you took all reasonable steps to prevent it. So the steps are worth having and worth being able to show.

What changed for this year's party?

Two things, both in force since 30 October 2026 under the Employment Rights Act 2025.

The duty to prevent sexual harassment of your staff used to be a duty to take reasonable steps. It is now a duty to take all reasonable steps. If there was a reasonable step you could have taken before the party and didn't, you haven't met it.

And you must not permit third parties to harass your staff. You are treated as permitting it if it happens in the course of their work and you hadn't taken all reasonable steps to prevent it. The Commission's guidance says who counts as a third party. Its list includes customers, clients, suppliers, members of the public and the friends or family of colleagues. At a Christmas party that is the bar staff, the table next to yours, the client you invited and somebody's husband.

This second change covers more than sexual harassment. It also covers harassment related to age, disability, gender reassignment, race, religion or belief, sex or sexual orientation. Our post on the 30 October duty has the steps for the rest of the year.

What do "all reasonable steps" look like for one evening?

The Commission published three steps for Christmas parties in December 2024, when the duty was still reasonable steps. It said then that employers "don't need to cancel your Christmas activities to comply with the law". The steps still hold. Here they are for a team of nine, with one of our own added at the end.

Think ahead. Ten minutes with a notepad:

the drink: a free bar all night is a decision. So is a set amount behind the bar, with food served early and proper soft drinks
getting home: last trains, taxis, who is driving
anything overnight: the same standards apply until everyone is home
who has power over whom: you, your managers and the newest or youngest people in the team
who else is there: venue staff, other parties, clients, partners

Keep the page. It is your risk assessment for the evening.

Say what's expected, before the day. A short message to everyone. There is one below to copy.

Think about everyone who isn't on your payroll. If you've invited a client, tell them what kind of evening it is. The venue's staff will be serving your team all night and the venue has the same duty towards them as you have towards yours. So expect the venue to act if one of your team is the problem.

Have one person in charge on the night. In a small business that is probably you. Stay clear-headed enough to notice, step in early and get someone home. If you'd rather enjoy the evening, ask a manager you trust to do it and tell the team who it is.

A note to send before the party

Copy this and change it to fit:

Hi all,

Looking forward to [date] at [venue]. A few things so everyone has a good night.

It's a work event, so the way we treat each other at work applies there too. That includes the venue staff and any guests. It goes for the drinks afterwards as well.

If anything happens that makes you uncomfortable, tell me or [second person]. On the night, by message or the next day, whichever is easier. We'll take it seriously and nobody will be treated differently for raising it.

Food is at [time]. The first [number] drinks are on us and there are soft drinks all night. Please plan how you're getting home. If you're stuck, ring me.

We're [open as normal / starting at 10] the next morning.

[Name]

Keep a copy with the date you sent it. If anyone ever asks what you did to prevent a problem, this message and your notepad page are the first two things you'd show.

What if someone tells you something happened?

Act that day, even if it's the first morning back and everyone is tired.

Listen and write down what they said, with the date. Ask what they want to happen. Don't promise to keep it completely secret, because you may need to act, but do tell them who will know and why. Then make sure they don't have to work alongside the person they've named while you look into it, without moving them somewhere worse.

If it could be a crime, ask whether they want to report it to the police and support them if they do.

Don't decide what happened in that first conversation. That is what the investigation is for. And don't let it drift because you're about to close for Christmas. Since 1 October 2026 the time limit for most tribunal claims has been six months, up from three, so a complaint from December can still become a claim in May.

Also, since 6 April 2026, reporting sexual harassment can count as whistleblowing, which protects the person from being treated badly or dismissed for making the report.

If the person they've named is a client or a guest, you still act. That can be a conversation with the client and a change to who looks after the account. In a serious case you may end the relationship. Warning a good client is uncomfortable. It is still the step.

Can I discipline someone for what they did at the party?

Yes. Acas says an employee can face disciplinary action for misconduct outside work. Its own example is behaviour at the work Christmas party in front of clients. It depends on how serious it was and whether it could affect the business.

The process is the one you'd use for anything else: investigate, put the allegation in writing, hold a meeting where they can bring a companion, decide and offer an appeal.

Four things go wrong in small teams:

deciding the next morning. If you need to keep people apart, send someone home on full pay while you investigate
treating two people differently for the same behaviour because one of them is your best salesperson
going cold on the person who complained
punishing drunkenness itself when you paid for the free bar. Deal with what the person did

From 1 January 2027, employees can claim unfair dismissal after six months in the job instead of two years. That includes people already on your payroll. So from January, dismissing anyone with six months' service for something that happened in December needs a fair reason and a fair process, with notes that show both. Discrimination and whistleblowing claims have never needed any length of service. What if a new starter isn't working out after January 2027? explains the change.

What about the morning after?

Decide before the party and put it in the note. You can open as normal, start later or hold the party the night before a day you're closed. All three are fine. What causes trouble is people guessing.

If someone doesn't turn up and hasn't rung, treat it as you would on any other day: find out why first, then decide whether it's a conduct matter. If they ring in sick, your usual absence rules apply. What if someone rings in sick for one day? covers the pay.

For anyone who drives or uses machinery for work: a person can still be over the limit the next morning. Say so in the note!

Does everyone have to come?

No. Nobody should feel they have to. Some people don't drink, for reasons of faith or health. Some have someone to get home to. Some don't want to spend an evening with the people they spend every day with. That's allowed.

A lunch suits people an evening doesn't. Ask the team which they'd prefer. Don't read anything into who stays away and make sure it never counts in anyone's review.

Quick answers

Is an employer liable for what happens at a work Christmas party?

It can be. A work party is likely to count as "in the course of employment", so harassment or discrimination by one of your staff there can be treated as done by you, unless you took all reasonable steps to prevent it. Since 30 October 2026 you can also be liable if a third party, such as a client or a member of the venue's staff, harasses one of your team and you hadn't taken all reasonable steps to prevent it.

Is the after-party the employer's responsibility?

It depends on how closely it is connected with work and a tribunal or court decides case by case. Drinks with colleagues straight after a work event have counted. In Bellman v Northampton Recruitment (2018), the company was liable for an assault by its managing director at drinks after the Christmas party, on facts the court called unusual.

Do we need a separate policy for the Christmas party?

No. You need a harassment policy that covers third parties and social events. You also need a short message before the party that says what's expected and who to tell if something goes wrong. Keep a dated copy of the message.

Can I dismiss someone for their behaviour at the Christmas party?

Yes, if it was serious enough and you follow a fair process: investigate, put the allegation in writing, hold a meeting, decide and offer an appeal. Acas uses behaviour at a work Christmas party as its example of misconduct outside work that can lead to disciplinary action. Treat people consistently and don't decide the next morning.

Is a promise made at the Christmas party binding?

It depends on what was said. In Judge v Crown Leisure Ltd (2005), words of comfort at the staff Christmas party about bringing an employee's pay into line with a colleague's eventually were too vague to be a contractual promise. A clear promise with a figure and a date could be a different story, so save pay conversations for the office.

Is the Christmas party a taxable benefit?

An annual party that is open to all your employees and costs £150 or less per person is exempt and you don't have to report it to HMRC. If you hold more than one annual event, the combined cost has to stay within £150 a head. GOV.UK has the conditions.

Want this sorted before the party?

Most of it is one message and ten minutes with a notepad. You can do both this week.

If your harassment policy doesn't mention clients, guests or social events yet, we write one to fit your workplace as a single HR document. We also run training on preventing sexual harassment, in person or online, with a record of who attended. And if something has already happened, Employee Relations Support gives you someone who has done this before, from the first conversation to the outcome. Every service and price is on one page: HR support for small businesses.

What if the most useful thing you do for the party this year is one message?

Send us your what-ifs.

This is general information for employers in England, Scotland and Wales, not legal advice. Northern Ireland has its own equality and employment law. If you're dealing with a specific situation, speak to an employment solicitor. Checked against legislation.gov.uk, the Equality and Human Rights Commission's technical guidance (updated 30 October 2026), Acas and GOV.UK on 12 November 2026.

What if something goes wrong at the Christmas party?