Preparing for the festive season: key employment law considerations for charities

Protecting charity employers during the festive season

As December approaches, many charities are planning festive and end-of-year celebrations. These events can support morale and reinforce a positive culture, but they also carry predictable risks around conduct, alcohol and the blurring of work and social boundaries. Charities face the additional pressure of maintaining the confidence of donors, beneficiaries, regulators and the wider community; a poorly handled incident can have reputational implications. With recent legal developments and more change ahead, this is a timely point for employers to take stock.

Work related events and employer liability

A recurring issue at this time of year is when employers may be legally responsible for conduct at parties, team meals, Secret Santa exchanges and other social activities. Liability for harassment arises where behaviour occurs “in the course of employment”, a concept the courts interpret broadly and with common sense.

“In the course of employment” does not simply mean during working hours or on work premises. Tribunals look at the real-world connection with work. Social events, gatherings immediately before or after work, work-related travel and situations where the working relationship explains why people are together may all fall within scope. The focus is on context, not formality.

The 2025 Employment Appeal Tribunal decision in AB v Grafters Group Ltd illustrates the point. An employee was sexually harassed while being driven by a colleague to what she believed was a work shift. Although the incident took place off-site and outside working hours, the EAT held the tribunal had taken too narrow a view of whether the events were still sufficiently connected to work. It should have considered the full context, including messages the colleague sent while on shift, their previous work-related travel and whether the lift formed part of a wider working relationship. The case was remitted for reconsideration.

This is a reminder for charity employers that structured celebrations can quickly evolve into informal socialising, continued drinking or shared travel. If inappropriate behaviour occurs, a tribunal, not the employer, will determine whether it was sufficiently work-related to trigger liability. Clear expectations and sensible precautions are therefore essential.

The duty to take reasonable steps to prevent workplace sexual harassment

The festive period is also an important moment to revisit the duty on employers to take reasonable steps to prevent workplace sexual harassment (Preventative Duty). Since October 2024, employers have been required to take reasonable steps to prevent sexual harassment by employees and third parties. This anticipatory duty requires employers to identify risks and take action before problems arise. Festive events, involving social interaction, alcohol and external venues, fall squarely within this obligation.

What steps are reasonable will depend on the organisation, but typically includes clear policies, regular training, event-specific guidance, visible management presence and trusted routes for raising concerns. Charities may also need to consider heightened risks arising from contact with volunteers, trustees, service users and the public.

Although case law has not yet emerged under the new duty, Acas has reported a 39% increase in helpline calls about workplace sexual harassment in the first half of 2025, signalling greater awareness and willingness to report concerns. Charity employers should therefore be ready to show how they anticipated and mitigated seasonal risks.

Looking ahead, the Employment Rights Bill proposes to raise the standard from “reasonable steps” to “all reasonable steps”, aligning the preventative duty with the higher threshold used for the statutory defence in harassment claims. Employers will therefore need to ensure their arrangements are not only in place but are effective, targeted and regularly reviewed. The Bill will also introduce statutory liability for third-party harassment across all protected characteristics, an important development for charities whose staff and volunteers often work closely with service users and the public.

The preventative duty is not about eliminating all risk. It is about showing that risks were identified, that steps were taken in advance, and that those steps were appropriate. A short pre-event reminder of expected standards, limiting the availability of free alcohol, subtle supervision of gatherings, putting in place safe travel arrangements, guidance on online conduct and thoughtful management of traditions such as Secret Santa can all form part of a considered approach.

Practical steps for charity employers

With case law highlighting how easily work and social boundaries can blur, and with the preventative duty now fully embedded, charity employers should approach the festive period with a clear and proportionate plan. The aim is not to dampen celebrations, but to ensure that all employees feel safe and supported, and that the charity is well placed to address issues if they arise.

• Set expectations early. A brief reminder of the charity's standards of behaviour, including expectations around alcohol consumption, respectful conduct and appropriate communication, can significantly reduce risk. This does not need to be heavy-handed; a short, well-pitched message ahead of events is often enough.
• Ensure managers are prepared. Managers and senior staff should understand their role during social events. That may include being visible, leading by example, keeping an eye on evolving dynamics as official celebrations give way to informal gatherings, and knowing how to respond or intervene calmly if concerns are raised.
• Review digital communication channels. WhatsApp groups and similar platforms can be a flashpoint for inappropriate 'banter' or messaging during and after events. Charity employers should remind staff that policies apply to work-related group chats, even if accessed on personal phones, and that concerns can be raised confidentially.
• Manage Secret Santa thoughtfully. Although intended as light-hearted fun, anonymous gift exchanges can generate complaints where boundaries are crossed or humour misses the mark. Offering simple guidance, such as avoiding gifts that could cause offence or embarrassment, helps ensure the activity remains inclusive, appropriate and fun.
• Consider safeguarding and beneficiary-facing risks. Charities often host community events or invite service users to festive activities. Safeguarding duties and professional boundaries continue to apply, and staff and volunteers should be reminded accordingly.
• Be ready to act if an issue arises. If concerns are raised at or after an event, early, supportive and well-documented action is essential. The preventative duty frames this within an anticipatory approach: employers should be able to show that they responded promptly, took the report seriously and handled the situation sensitively. Charity employers should also consider whether the implications of the incident are as such that it meets the threshold for reporting as a serious incident to the Charity Commission, particularly where it involves harm to beneficiaries or staff, significant reputational risk or systemic failure.
• Support staff who come forward. Creating an environment where staff feel confident to call out poor behaviour if they experienced or witness it is important. Ensuring that staff know who they can speak to, that reports will be handled sensitively and that they will be supported throughout the process can make a considerable difference to whether individuals feel able to raise concerns.

Taking these steps helps demonstrate that foreseeable risks were considered and that the organisation acted responsibly and proportionately to safeguard its staff. This not only reduces legal exposure but, just as importantly, helps create the safe, positive and celebratory environment organisations want to provide at this time of year.

For more information or advice, please contact Jessica Scott-Dye in our Employment team.