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47% of companies cancel Christmas parties due to HR concerns, research finds

Skillcast, a compliance training provider, urged businesses planning events to be prepared due to recent changes in worker protection laws.

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47% of companies cancel Christmas parties due to HR concerns, research finds
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Recent research by Craze Central has found that 47% of UK companies will not be holding a Christmas party this year, with cost and HR concerns as the main reasons.

Skillcast, a compliance training provider, urged businesses planning events to be prepared due to recent changes in worker protection laws.

The Worker Protection Act, which amended the Equality Act 2010 and came into effect in October 2024, increased the legal responsibility for employers to prevent harassment.

This means that companies must take proactive steps to create a safe environment, rather than reacting after an incident has occurred.

Employers who fail to prevent harassment may face a 25% increase in compensation awarded to victims.

The Act extended responsibility to harassment by third-parties such as customers, clients, or contractors.

The Equality and Human Rights Commission (EHRC) updated its technical guidance, recommending that employers conduct risk assessments to identify and address sexual harassment risks.

Skillcast advised companies to conduct training sessions on appropriate workplace behaviour, develop or update harassment policies, and review workplace interactions with third-parties to identify and mitigate risks.

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Employers also remain responsible under the Health and Safety at Work Act 1974 for ensuring the safety of employees during social events.

The Employment Rights (Flexible Working) Act 2024, which allowed employees to request flexible working from day one of employment, may also affect employee availability for holiday parties.

Employers should also be mindful of their responsibilities under the Worker Protection Act, and consider the cultural and religious backgrounds of their workforce when planning events.

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Social media use during work-related events can also pose a risk, as employees posting inappropriate content can lead to HR issues.

Skillcast recommended that employers have social media policies in place for such occasions.

Finally, employers should be aware that the holiday season can be difficult for employees facing mental health challenges.

Office parties may exacerbate feelings of anxiety or isolation, and companies should consider this when planning events.

Vivek Dodd, director at Skillcast, said: “While Christmas parties can foster team spirit and employee engagement, it’s crucial to navigate this festive tradition with a strong focus on inclusivity, safety, and compliance. 

“Employers must be aware of their obligations under employment laws, including the Equality Act 2010 and Health and Safety regulations, to ensure that all employees feel respected and protected. 

“We recommend that employers remind staff of their anti-harassment policies ahead of the event and ensure managers are vigilant.

“It’s important to maintain clear boundaries around behaviour and ensure everyone knows that the same standards that apply in the office are expected at social gatherings. 

“Additionally, employers should have clear social media policies in place that govern online behaviour during work-related events.

“What employees post online can impact an organisation’s reputation, so it’s vital to set expectations and encourage responsible online conduct.”

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