Insurance Coverage for Christmas Parties/Celebrations

When the end of the year approaches, Christmas parties and events are a staple in workplaces across Australia. These events are a great way to celebrate the year with work colleagues and unwind from work leading into the holiday season and the new year. Although these events are designed for celebration, injuries can occur to work staff due to an incident or accident. Whether you are covered under Workers Compensation and the employer’s insurance in these situations is something that has always been up for debate.

Is the Christmas Party still considered part of the ‘Workplace’?

The main question is whether the Christmas party/event is considered a work event and covered under Workers Compensation. It is likely that you will be covered under Workers Compensation for an injury that occurs at these ‘work’ events. This is because the event will be considered as part of an individual’s employment. If the event is funded, sponsored or promoted by the employer then it is considered a work event and part of the working environment. Accordingly, the employer has the responsibility to ensure the safety of employees and provide a safe environment. Thus, the employer would likely be liable for most injuries that occur.

Conduct at the Event

Although the Christmas party/event would be considered a work event and part of the working environment, not all injuries would necessarily be covered under Workers Compensation. As the event is considered an extension of the work environment, attendees must adhere to employment laws and consider their conduct. Injuries sustained due to behaviour resulting from severe intoxication would likely result in attendees not being covered under Workers Compensation. This can be seen in previous cases where ‘serious misconduct’ resulted in the employer not being liable for injuries that occurred.

Are you only covered at the event?

If you are injured whilst travelling to the work event, you would likely be covered by Workers Compensation. The employment insurance scheme and Workers Compensation cover journeys to and from work. Travelling to work Christmas parties can fall under this as well. In a previous case where an employee was injured on the way to a work Christmas party, it was argued that the employee was on the way to her place of employment and that there was a real and substantial connection between her employment and injury. The ruling was in favour of the employee in this case.

If an injury occurs whilst leaving the work event, there is a possibility of being covered by Workers Compensation, however this would depend on several circumstances which may be assessed such as where the employee was travelling to after the event and their conduct.

Regarding parties and celebrations held after the event, it is likely that the employer would not be liable for injuries that occur at these ‘after’ parties. In a previous case it was ruled that the after party was not an official work function and the employer would not be liable for the injuries that occurred.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

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