However, while these events offer great opportunities for staff engagement, they can yield both liability risks and workers’ compensations claims, making strategic management and careful thought vital to their success.
Despite staff parties often taking place both outside of regular working hours and offsite, work health and safety, workers’ compensation laws and subsequently the employer’s duty of care does not end.
Local governments as employers, may still be held liable for incidents that occur during these events, including injuries, cases of harassment, discrimination, and misconduct. This liability can even extend to behaviour between employees and third parties, as well as incidents occurring on the way to, from and after the event.
One of the main contributory factors in accelerating this risk, and a common feature at most staff parties and afterparties is alcohol. Consumption can dramatically increase the risk of accidents and inappropriate behaviour. It is important that employers remain vigilant and are seen to actively monitor behaviour and alcohol consumption that can lead to costly claims and reputational damage.
LGIS had the pleasure of visiting the City of Kwinana to present the 3 Steps to Safety Diligence in Safety Award. We recognised Kwinana’s outstanding commitment to workplace health and safety based upon their incorporation of our three steps ‘assess’, ‘plan’ and ‘act’.
Local governments, as employers, face many of the same challenges as other organisations when it comes to dealing with their employees. The reality is that issues or disputes with employees are inevitable, and on some occasions will lead to an employee pursuing a legal claim relating to their employment.
Injuries that happen during your commute to or from work are not covered by workers’ compensation. However, there is special protection called Journey Personal Injury cover, which is fully funded by the WorkCare Scheme for employees in the local government sector.
Under the Workers Compensation and Injury Management Act 2023, the legal definition of a worker includes full-time, part-time, casual, seasonal, piece and commission workers. Working directors, contractors and sub-contractors may also be defined as workers depending on their working arrangements. Crucially this does not include volunteers.
Under the Work Health and Safety Act 2020 however, a workplace is classified as any place where work is done for a business or organisation. It also includes any place a worker goes or is likely to be while working. This encompasses all work functions and importantly this does extend to include volunteers.
Therefore, if an event is explicitly organised by an employer, the WHS Act 2020 requires the person conducting the business or undertaking (local government) to ensure the health, safety, and welfare of all employees, including volunteers and visitors. However, under the Workers Compensation and injury Act 2023, volunteers do not have the same compensation entitlements as paid employees, despite in some cases attending the same event.
To illustrate this point, the case of Youngblutt v Workers Compensation Regulator 2019 demonstrates one of the risks the overconsumption of alcohol at staff functions can pose.
In 2015, an employee (Youngblutt) suffered a psychiatric injury following inappropriate behaviour carried out by her coworker (Diehm) at a Christmas party organised by the Queensland Police Service. The party was funded by contributions from attendees, with social club members and their partners attending free of charge.
During the party, Youngblutt alleges that Constable Diehm engaged in inappropriate and unwelcome behaviour, including:
Following the party, Youngblutt reported the incident to the District Duty Officer and made a formal complaint to the Ethical Standards Command.
She ceased working with Diehm after the event and took several days off work due to the psychological impact.
Youngblutt was recognised as having sustained a psychological injury as a result of the inappropriate conduct at the Christmas party. Diehm admitted to the behaviour during an internal inquiry but claimed he had no recollection due to intoxication.
After careful consideration of the evidence and submissions, the Queensland Industrial Relations Commission (QIRC) made several important findings:
As a result, Youngblutt’s claim for workers’ compensation was accepted, and the Regulator was ordered to pay her costs related to the findings.
Whether a work party takes place during working hours or not, it must be treated as an extension of the workplace which strictly maintains the values and culture of the local government.
The outcome of Youngblutt v Workers Compensation Regulator 2019 underscores the legal responsibility employers have to look out for the wellbeing of their employees, even during social events. Crucially, both physical and psychological injuries caused by workplace-related harassment, misconduct or negligence at parties are compensable, reinforcing the need for proactive risk management and a strong culture of respect and safety.
It is important to note that while following this guide cannot automatically exclude employees from being able to lodge a workers compensation claim, the outlining of expected behaviours and clear documentation of planning can help to protect both the local government from liability and its reputation should an incident occur.
Work parties are valuable opportunities to celebrate and strengthen team spirit. However, local governments in WA must proactively manage the associated risks to protect their employees and their organisation alike. By setting clear expectations, controlling risks, and ensuring appropriate due diligence has been undertaken, you can enjoy a safe, inclusive, and memorable festive season.
For further advice on managing risks for your events, please contact the people risk team or your regional risk specialist.
This year marks the significant milestone of the 30th anniversary of LGIS. It’s an opportunity to reflect on the remarkable journey we have undertaken together over the past three decades. Since our founding in 1995, LGIS has evolved from a practical response to emerging risks into a pioneering mutual scheme that proudly serves the diverse needs of Western Australia’s local governments.
Fostering children’s development and enhancing community wellbeing, playgrounds are undeniably an influential facet in supporting learning and social interaction. As a hugely important piece of public infrastructure, balancing the risks with the benefits of play is therefore an important issue for local governments to navigate.
Bushfires, cyclones, fatalities, cyber breaches and CCC investigations are all examples of incidents that may send your local government into crisis. If this happens, our team of experts are standing by ready to comprehensively support you through turmoil and disruption.
