office party and employer liability
03Dec

Employer Liability at Workplace Events in Ontario

Office parties, team retreats, and workplace celebrations can boost morale and reduce burnout, especially in an era where remote and hybrid work can make employees feel disconnected. However, these events also expose employers in Ontario to potential legal risk.

Misconduct at workplace events can result in harassment complaints, human rights claims, OHSA investigations, WSIB claims, and even civil lawsuits. Understanding when employers may be held liable and how to reduce exposure is essential for every Ontario business.

This updated article explains how liability works, what recent case law says, and how employers can protect themselves before, during, and after workplace events.

When Can Employers Be Held Liable for Misconduct at Work Events?

In Ontario, employers can be held responsible for employee misconduct at office parties or off-site events under:

Even if the event is after hours or held off-site (e.g., restaurant, hotel, golf course), it is still considered a workplace function if the employer organized, endorsed, encouraged, or paid for it.

⚠️ Courts and tribunals have repeatedly held that “workplace” includes employer-sponsored events.

What Is Vicarious Liability in Ontario?

Vicarious liability means an employer may be legally responsible for harm caused by an employee even if the employer did nothing wrong.

Ontario courts apply a two-part test:

1. There is an employment or subordinate relationship
  • The employer has control or authority over the wrongdoer (employee, supervisor, or in some cases, contractor acting like an employee).
2. There is a strong connection between the employee’s role and the misconduct
  • Courts look at whether the employer’s business or the event created or increased the risk of the misconduct.

This approach comes from Bazley v. Curry (SCC, 1999) and is widely applied in Ontario.

Ontario examples of employer liability at events

Employers have faced consequences where:

  • Alcohol was provided or encouraged
  • A supervisor harassed or assaulted an employee
  • A worker was injured travelling to or from an employer-sponsored event
  • A manager acted in a discriminatory or inappropriate manner toward staff
  • Safety risks were not monitored at a company event

Even if the misconduct feels “personal,” employers may still be liable if the work event created the opportunity.

Human Rights and OHSA Obligations at Work Events

Human Rights Code

Employers must prevent harassment and discrimination based on protected grounds (e.g., sex, race, disability).

This applies fully to:

  • Holiday parties
  • Retreats
  • Networking events
  • Team socials
  • Off-site lunches

A single discriminatory act at an event can create liability.

OHSA

Employers must take every reasonable precaution to protect employee safety. This includes psychological safety.

At workplace events, this means:

  • Monitoring alcohol consumption
  • Ensuring safe transportation
  • Preventing violence and harassment
  • Intervening in unsafe behaviour

Failure to do so may trigger Ministry of Labour involvement.

Common Liability Risks at Workplace Events

Employers may face claims stemming from:

1. Harassment & Sexual Harassment
  • Alcohol consumption is a common factor in event-related harassment complaints.
2. Violence or Altercations
  • Physical fights or aggressive behaviour can create liability under OHSA and civil law.
3. Alcohol-Related Driving Incidents
  • Ontario courts have found employers liable where:
    • Impaired employees were allowed to drive
    • Employers failed to offer safe alternatives
    • A supervisor continued serving an intoxicated employee
4. Injuries at Events
  • Slip-and-falls, unsafe venues, or poorly supervised activities may trigger WSIB or civil claims.

How Employers Can Reduce Liability at Workplace Events

Before the Event

  • Update harassment, violence, and alcohol-use policies
  • Circulate a Workplace Event Code of Conduct
  • Remind employees the event is a professional function
  • Arrange safe transportation (vouchers, taxis, rideshare credits)
  • Train managers on their obligations during the event

During the Event

  • Ensure at least one sober manager or HR representative is present
  • Monitor alcohol consumption
  • Intervene early in concerning behaviour
  • Provide plenty of non-alcoholic options
  • Shut down unsafe conduct immediately

After the Event

Taking proactive steps dramatically reduces exposure to legal claims.

What To Do if an Incident Occurs

Employers should:

  1. Immediately ensure everyone’s safety
  2. Document what happened
  3. Launch a prompt investigation (required under OHSA)
  4. Suspend employees if needed pending investigation
  5. Seek legal advice ASAP
  6. Review internal policies to prevent recurrence

A mishandled response often creates more liability than the incident itself.

Conclusion

Workplace events can strengthen culture, but they also create real legal risks.

Ontario employers must understand that vicarious liability, OHSA duties, and human rights obligations all follow them outside the office.

With clear policies, proper supervision, and proactive planning, employers can host successful events while minimizing exposure.

Need Help Protecting Your Organization?

Workplace event incidents can lead to harassment claims, human rights applications, OHSA investigations, or lawsuits.

You don’t want to manage that alone.

At Achkar Law, we help Ontario employers:

  • Draft or update event and conduct policies
  • Assess risk and create preventative strategies
  • Respond to workplace event complaints
  • Conduct legally compliant investigations
  • Defend against harassment, discrimination, or vicarious liability claims

Contact Achkar Law today for proactive advice and legal protection before your next workplace event and responsive support if a problem has already occurred.