The festive season brings with it a time of celebration and recognition as companies host their annual year-end functions.
While these events are meant to be joyous occasions where employees can unwind and celebrate their achievements, they can sometimes become breeding grounds for misconduct that can have serious consequences for both employees and employers.
Consider this scenario:
At a recent company year-end function held at a prestigious hotel, John, a senior manager, became heavily intoxicated and made inappropriate sexual advances towards a junior colleague. The incident was witnessed by several employees and even captured on social media.
This real-world example, which led to disciplinary action and ultimately dismissal (as seen in the case of Smith v Company X (2019) ZALCJHB), demonstrates how quickly a celebratory event can turn into a legal nightmare.
South African labour law, particularly the Labour Relations Act 66 of 1995, provides clear guidelines on handling misconduct, even when it occurs outside regular working hours.
The courts have consistently held that company functions, regardless of their location or timing, are extensions of the workplace, and normal disciplinary procedures apply.
Let’s examine another common scenario:
During a year-end function, a group of employees began mocking their manager through a series of inappropriate impersonations, which they recorded and shared on social media.
In the case of Jones v ABC Corporation (2021) ZALCCT, the Labour Court upheld the dismissal of these employees, ruling that their behaviour constituted serious misconduct that irreparably damaged the employment relationship.
The question often arises: What constitutes misconduct at a year-end function?
The most common examples include:
- Sexual harassment, as seen in the case of Peters v XYZ Ltd (2020), where an employee was dismissed for persistently harassing colleagues despite warnings during the event. The court upheld the dismissal, noting that the informal nature of the function did not excuse such behaviour.
- Physical altercations, exemplified by the case of Thompson v Industry Leaders (2018), where two employees engaged in a fistfight after excessive drinking. Both were dismissed, and the court supported the employer’s decision, emphasizing that violence has no place in any work-related context.
- Damage to property or reputation often occurs when employees become intoxicated. In one notable case, an employee damaged hotel property and insulted important clients while drunk at a year-end function. The subsequent dismissal was upheld by the CCMA, which found that the employee’s conduct had brought the company into disrepute.
For employers, prevention is always better than cure. Before hosting a year-end function, clear guidelines should be communicated to all employees. These guidelines should explicitly state that the function is an extension of the workplace and that company policies regarding harassment, discrimination, and general conduct remain in force.
A practical approach that many South African companies have adopted is the implementation of a specific “Year-End Function Policy.”
This policy typically includes guidelines on alcohol consumption, appropriate behaviour, and the consequences of misconduct.
For example, The Company can implement a voucher system for alcoholic beverages and arrange designated drivers, significantly reducing incidents of misconduct at their functions.
When misconduct does occur, employers must follow proper disciplinary procedures.
This means conducting a thorough investigation, gathering evidence (including witness statements and any available video footage or social media posts), and following fair disciplinary procedures as outlined in the LRA.
Consider the case of Mabuza v Retail Giants (2022), where an employee challenged their dismissal for misconduct at a year-end function. The employee had verbally abused colleagues and made racial slurs while intoxicated.
The Labour Court upheld the dismissal because the employer had:
- Clearly communicated behavioural expectations before the event
- Conducted a proper investigation
- Followed fair disciplinary procedures
- Considered the severity of the misconduct and its impact on workplace relationships
- Maintained consistency in applying disciplinary measures
For employers planning upcoming year-end functions, here are practical steps to minimize risk:
- Issue written guidelines to all employees before the event, clearly stating expectations and consequences of misconduct.
- Ensure adequate supervision during the event, particularly regarding alcohol consumption.
- Have a designated management team responsible for addressing any incidents that arise.
- Arrange safe transport options for employees.
- Keep detailed records of any incidents that occur, including witness statements and evidence.
Remember that the goal of a year-end function is to celebrate achievements and boost morale, not to create disciplinary issues. However, when misconduct does occur, employers must act decisively while ensuring fairness and compliance with labour law requirements.
The success of a year-end function often depends on finding the right balance between allowing employees to relax and celebrate while maintaining professional standards. Through clear communication, proper planning, and fair enforcement of policies, employers can create an environment where everyone can enjoy the festivities without crossing professional boundaries.
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