Injury at a Corporate Event
Is the employer liable for employee injuries during «festivities» at corporate events?
A wave of corporate events dedicated to March 8 is about to sweep across the country. And starting in May, companies will actively begin organizing summer off-site events: from simple barbecues after sitting in a stuffy office to specially planned team-building activities.
What if an employee gets injured during a celebration? Or if a feast ends in a fatality? Will the employer be held responsible? Anna Ustyushenko, a partner at the law firm INTELLECT and head of the «Labor Law» practice, explains.
To answer these questions, we should refer to Article 227 of the Labor Code of the Russian Federation, which defines what events are considered workplace accidents.
A workplace accident is an event as a result of which the victim sustains bodily injuries (trauma) leading to the need for transfer to another job, temporary or permanent loss of ability to work, or death.
As a general rule, an event is recognized as a workplace accident if it occurs:
- while the employee is performing their job duties or other work assigned by the employer;
- during working hours;
- on the employer's premises or at another place where work is performed.
In the case of corporate events, there is no question of the employee performing their job duties (unless the employee is a professional host, for whom the corporate event is work time).
However, Article 227 of the Labor Code also includes another case where an event is considered work-related:
when the employee is performing other lawful actions related to their employment relationship with the employer or acting in the employer's interests.
The latter means that a workplace accident can occur outside working hours and not on the employer's premises. Trouble can happen anywhere the employee finds themselves due to their employment relationship or while acting in the employer's interests.
It follows that participation in team-building games, visiting a restaurant with business partners, going to a sauna after signing a contract, or even a feast in the accounting department—all these are situations of potential risk for the employer. The liability can be quite significant: from administrative (Article 5.27.1 of the Code of Administrative Offenses with fines and suspension of activities) to criminal (Article 143 of the Criminal Code).
Courts recognize injuries sustained at events as workplace accidents if:
- the employer obliges employees to participate in the event (in practice, there are cases where absence from the celebration is threatened to be considered absenteeism);
- the employee is acting in the employer's interests (for example, as a member of the company's sports team);
- the employer organizes the event at the place where job duties are performed and informs employees about attendance (sends out invitations);
- the employer independently organizes food and entertainment, which become the cause of injuries or poisoning.
Based on the above, the safest option is considered to be an event held off-site, outside working hours, with a program and catering provided not by the employer or colleagues but by third-party organizers. Alcohol at corporate events is possible if employees are over 18.
However, there should be no coercion to attend the corporate event or threats of absenteeism. Likewise, there should be no orders mandating participation in the corporate event.
Anxious employers can be advised to regulate the issue of attending non-work events in local regulations, emphasizing the voluntary nature of participation in celebrations, employees' responsibility for themselves, and the consequences of alcohol consumption («the employer is not responsible»). Internal regulations can include a clause stating that injuries sustained at such events, even if the event is held on the employer's premises, are not considered workplace accidents and are not subject to investigation. Include such a clause in the Internal Labor Regulations or special local acts on non-work events, if they are approved.
This material was prepared specifically for the INTELLECT website.
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