Company Outings and Employer Liability: Who Pays for the Damage?

It is common for an employee in the hospitality industry to be injured when working. This could be a fall in the kitchen, burns from hot plates or cuts from using a sharp knife. In principle, the employer is liable for the damage resulting from an accident at work. But what if the employee is injured during a company outing? Who is liable then?

Employers’ liability for workplace accidents
Employers have a duty of care to provide employees with a working environment where they can carry out their work in a safe and healthy way. This means that employers have to take appropriate measures to prevent accidents. If an accident does occur during working hours, the employer is, in principle, liable for the resultant damage. An exception to this exists if the employer can prove that it fulfilled its duty of care and adequately ensured the safety of the working environment. If the employee acted intentionally or knowingly recklessly, the employer is not liable either.

This liability is not limited to the workplace; if an employee is injured due to an accident during a company outing or staff activities, the employer may be held liable in certain circumstances.

The employer’s liability during a company outing
There are various factors that determine whether the employer is liable for an accident during a company outing. Case law provides some guidance here. For example, it is relevant whether the company outing is mandatory or whether employees take part in it voluntarily. If the outing is mandatory or if employees are pressured to attend, this is more likely to be regarded as an extension of work. In that case, the employer’s statutory duty of care also applies during the company outing.

If employees are not required to participate, the employer’s liability depends on the circumstances. For instance, activities that carry an increased risk of an accident may require the employer to take extra precautions. In addition to taking precautions, the employer also has to take safety measures, such as providing clear instructions and protective equipment.

If there is such a connection between the activity (in the context of which the accident occurs) and the employment contract, good employment practices still entail an additional duty of care and prevention. The employer must comply with this duty even during company outings.

In a case where an employee was injured during a staff roller skating party, the judge ruled that the employer was liable. The employer had taken insufficient safety measures and had not limited the risks enough.

Another case involved an accident caused by a rodeo bull at a staff party. One employee had been injured when falling off the bull. The judge ruled that the employer was not liable, finding that rodeo riding is an activity where the bull spins round and round and bucks up and down while the person sitting on it tries to stay on as long as possible. Ultimately, just like the employee, everyone who goes on falls off onto the padding at some point, some just a bit sooner than others. That is inherent in rodeo riding and that is also part of the fun. Put briefly, this employee could have known that rodeo riding a bull like this was not without risk. The judge ruled that this is not so dangerous an activity that it should not take place at a staff party, and the employees themselves could choose whether or not to ride the rodeo bull.

What can employers do?
Organizing company outings outside working hours is not entirely without risks for employees or the employer. To limit liability, it is wise to consider the following points when organizing a company outing:

• Is the activity mandatory or voluntary (purpose of the staff outing)?
• Where will the activity take place?
• Are there risks associated with the activity? How can they be limited?
• Will there be sufficient safety measures in place, such as protection and professional guidance?
• Will the employees be properly informed of the risks and provided with instructions?
• How will alcohol consumption be dealt with and how will this be checked?

By taking account of the above aspects, employers can reduce the risk of employees having an accident and reduce their liability for it.