Alcohol at your Company (Christmas) Events May Equal Liability

Many companies stop to consider the effects of serving alcohol at the Christmas party, but somehow the department “happy hour” social or the summer picnic escape the same level of scrutiny. 
Ontario (unlike many US states) has not enacted any legislation regarding the liability of a host (commercial, social or otherwise) who furnishes alcohol to a guest and where an intoxicated guest damages a third party.  In Canada, courts have imposed liability where:  1) an employer requires the employee’s attendance at the function; 2) the function furthers the employer’s interest(s) in some way; and 3) where the employer had some ability to stop the consumption of alcohol when it is apparent that the employee is “obviously intoxicated.”
Ways to minimize liability include hosting an event during the day, not making the function mandatory, limiting the amount of alcohol available, and providing designated drivers (whether in the form of volunteer employees or taxi coupons).

Minimizing  your liability....

There is no magic bullet, but business owners can take some common sense steps to avoid litigation, or at least minimize the possibility they will be held responsible in a lawsuit:

§                       Make it clear to employees that attendance to an event is voluntary - don't make employees feel as if they are expected to be there. Make the purpose of the event clear. For example, you might call it Employee Appreciation Day.

§                       Operate a cash bar, employees purchase their own alcoholic beverages.

§                       Set expectations for attendee behavior. Plan recreational activities that minimize discussion of serious company business, yet maintain an atmosphere that is appropriate.

§                       Do what you can within reason, to ensure that obviously impaired employees do not drive home. Have a taxi parked at the venue and available to any employee that requires assistance.

§                       Finally, make sure you are adequately covered with commercial general liability insurance.

	This posting is informational only & is not intended as legal advice. Consult a lawyer for specific guidance.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net