EMPLOYERS’ LIABILITY - 19.04.2007

A fun (and safe) day out

Avoiding liability

Like many employers, you’re operating in a tight labour market and wish to retain quality staff. You’ve decided that one way of doing this is to hold activity days as a morale booster. It’s your intention to hold physically challenging events such as paint-balling as well as sedentary ones such as theatre trips. However, before going ahead, you need to know if there are any safety issues to look out for. If so, what are they and how can you manage them safely?

Legal issues

If you’re wondering why you should worry about safety for an activity which isn’t work-related, that’s understandable. However, the courts consider these trips out to be an extension of work. This means that you have duties under the Health and Safety at Work Act 1974 to manage staff safety as far as is reasonably practicable, e.g. by only using a reputable company. You also need to consider vicarious liability should one of your employees injure another during an activity. This used to be limited to acts which arose directly from the employment relationship. However, the courts have now extended this principle to include injuries arising from activities only loosely connected with work, e.g. one employee injuring another on an activity day. If you don’t do your homework, you could be the one who’s sued.

What about insurance?

For this reason, a good starting point is to consider if the event merits insurance cover. A good rule of thumb is that it will do if it’s a sporting event and/or could lead to injury. If so, check that the provider has public liability cover (ideally at least £1 million for potentially high-risk activities). Whilst this may sound like a lot, it won’t go far in the event of a serious injury to an employee. This means that if there’s not enough cover, the injured party would then look to your Employers’ Liability (EL) cover to make up the shortfall.

Tip. If you’ve concerns over the level of cover, give your broker a call for advice. Depending on the event and where it’s held, there may be a chance that they can extend your existing EL cover to make up the difference.

Look at safety management

You also need to consider how the events company manages health and safety. The exact information that you need will depend on the activity, but consider the following areas:

• Training. If you’re going for more specialist activities such as clay pigeon shooting, ask about their training on safety procedures.

• Staff expertise. Ask about staff qualifications and refresher training.

• Personal Protective Equipment (PPE).Where relevant, ask about the safety equipment and clothing that’s provided.

• Equipment maintenance.If the activity relies on specialist equipment, don’t hesitate to ask how often it’s maintained or tested.

Tip. Personal recommendations are best, so talk to your business colleagues. Failing that, professional events companies should produce literature on their events which answer these questions. So save yourself time by asking for copies from several local providers. If they’re reluctant to provide it, you can draw your own conclusions.