Christmas party at work: when is it work, why not drink and who is liable for an accident

When is a Christmas party considered work

At first glance, a Christmas party may seem like a purely informal event that employees and management enjoy outside of their normal work duties. However, in terms of the Labour Code, it is not always that simple. What matters is whether the party is work-related – that is, whether it takes place during working hours, is organised by the employer and attendance is considered part of the performance of work tasks.

If the employer includes the party in working hours, pays for its costs from company funds and expects employees to attend, it may be considered a work event. In this case, the time spent at the party counts as working time and the employee is entitled to wages. However, this also creates a health and safety liability for the employer at the event – similar to a team building or training event.

The situation is different if the party takes place after the end of the shift or outside the company premises, for example in a restaurant. Attendance is voluntary, employees are not “on duty” and their presence does not count towards working time. The employer is not responsible for their behaviour or any injuries.

What should employees look out for? If they keep time records at work – for example, by using an electronic system or beepers – they should sign out before the party. This will formally end working hours and avoid any doubt as to whether the event falls within the scope of work. Indeed, in the event of an accident or other incident, it is often this detail that determines who is liable.

Alcohol in the workplace? Even a small drink can be a problem

Although the Christmas party is associated with a relaxed atmosphere, alcohol in the workplace is clearly prohibited from a legal perspective. The Labour Code stipulates that an employee must not enter the workplace under the influence of alcohol or consume alcohol while at work. Similarly, the employer must not allow persons under the influence of alcohol to work at all. This prohibition also applies to all premises where work is normally carried out – including the office, meeting room or production hall if they are used for a company party.

If the party is held during working hours or on the employer’s premises, alcohol should not be served at all. Even if it appears to be just an informal gathering, the employee is still “at work” – and the Labour Inspectorate may consider the presence of alcohol to be a breach of the employer’s occupational health and safety (OHS) obligations. Penalties can be up to CZK 100,000.

If the employer holds the event after working hours, outside the normal workplace, the rules are more lenient. However, the employer is still not liable if someone is drunk and injures themselves or damages someone else’s property – and the employee may be held fully liable.

Employees should therefore be aware that a “drink at work” can have consequences even without any accident. Not only is there a risk of sanctions for breach of work discipline, but alcohol during recorded working hours can also be considered gross misconduct – thus grounds for dismissal or immediate termination of employment.

Injuries at a party: when is an accident at work

If an accident happens during a company party, it cannot automatically be assumed that it is an accident at work. According to the Labour Code, an accident at work is an injury to health that occurs during or in direct connection with the performance of work tasks. As we have already explained, the decisive factor is the nature of the event – whether it was of a work nature, part of working time and organised by the employer.

If the party was held during working hours and attendance was compulsory, the injury may indeed be assessed as an accident at work. In such a case, the employee is entitled to compensation for damages, pain and suffering and loss of earnings. The opposite situation arises with voluntary after-hours parties. There, it is a private activity and the injury is therefore not a work-related injury. The employer is not liable for it, even if it organised the event or paid the costs.

The circumstance of whether the employee was under the influence of alcohol is very important. If it is proved that the accident was caused by drunkenness, the employer is completely absolved of liability – and the employee is not entitled to any compensation. Where there is partial fault, compensation may be reduced proportionately.

Employees should therefore bear in mind that even if it is an informal event, the same safety rules apply as at work. Every accident should be reported to the supervisor and recorded in the accident book, even if it later turns out not to be a work-related accident. It is the early reporting that is crucial should there be a liability dispute later.

What if the party is held on the company premises

For practical reasons, many employers choose to hold their Christmas party in the office, meeting room or other company premises. On the face of it, this is a convenient and cost-effective solution, but from an employment law perspective it significantly increases the risk of legal liability.

If the event is held in the employer’s building, it is necessary to clearly define when working hours end and when the private part of the evening begins. As long as employees are in working time, all workplace safety(OHS) rules apply – including the prohibition of alcohol. Even if the party is intended as a thank you to the employees, legally speaking they are still ‘in the workplace’ and the employer must therefore provide a safe environment.

Another risk is the unclear recording of working time. If an employee has a “punch clock” or other attendance system, he or she should sign out before the party starts so that it is clear that the work shift has ended. Failure to do so could result in a situation where any injury would be considered work-related – and liability would fall on the employer.

The issue of insurance and liability is also not insignificant. If something is damaged or a third party is injured during a party on company premises, the insurance company may refuse to pay, arguing that the employer has breached its duty of prevention.

Therefore, from a legal and practical point of view, it is always safer to move the Christmas party off the company premises – ideally to a restaurant or other establishment that is responsible for operational safety itself.

How to protect yourself: practical advice for a calm and legal Christmas party

To prevent the Christmas party from becoming a legal complication, it pays to follow a few basic rules. The first step is to clearly distinguish whether it is a work or a social event. If the employer designates attendance as voluntary and the party takes place after working hours, this will minimise the risk of it being treated as work-related. Employees should check that they are actually signed off the timesheet at the end of their shift – thus formally ending the working part of the day.

The second principle is to observe the prohibition of alcohol in the workplace. Even if the atmosphere is friendly, the Labour Code does not allow for exceptions. Alcohol in the workplace is an offence and, in extreme cases, can be grounds for dismissal. If the event takes place off the premises, the rules may be looser, but it is still the case that an injury due to drunkenness is never a workplace injury.

The third principle is a reasonable degree of responsibility. Employees should be mindful of their conduct outside of work hours, especially if colleagues or supervisors are attending the event. Inappropriate behaviour under the influence of alcohol can damage professional reputations and workplace relationships.

From a legal perspective, the closer a company event is to normal work – i.e. it takes place during working hours, on the workplace or with management present – the more the rules of the Labour Code apply. The Christmas party should be primarily a space for thanks and relaxation, not a grey area between work performance and personal time off. Caution and clear rules protect both the employee and the employer.

Summary

A Christmas party can be a pleasant end to the working year, but it can also be a legally sensitive situation. The key is to distinguish whether it is a work event or a purely social gathering. If it takes place during working hours or on the employer’s premises, it may be considered to be in the course of work – and the same rules apply as for normal employment, including no alcohol. A voluntary after-hours meeting away from the company is legally the safest option for everyone involved. In the event of an accident, the employer will usually be exonerated from liability if it can be proven that it was a purely private event or that alcohol caused the accident. Whether it’s a small team party or a big company celebration, it pays to keep your common sense – and a little legal caution.