The Festive Season and Workers Compensation – Are You Covered?

16 DEC 2019

 

With Christmas fast approaching, many of us will be getting ready for a work Christmas party. Fortunately, if something goes wrong at one of these festive occasions and you are injured, its very likely that you will be covered by the NSW Workers Compensation scheme, even though you are not technically “working” at these events.

Under the Workers Compensation Act, various decisions from the Workers Compensation Commission have determined that most injuries sustained at work Christmas functions are covered by the scheme, as attending Christmas parties is generally considered part of one’s employment.

An example of when a worker is covered by the scheme is the case of McCoy v State Super Financial Services Australia Ltd. In this matter, the worker, Ms McCoy, suffered an injury to her right ankle on her way to her work Christmas party. Ms McCoy and her husband had booked a hotel near the Christmas party to avoid a long trip home and on their way to the party, the worker fell on a raised paver on the public footpath and then returned to her hotel room. Whilst McCoy’s injury did not occur at her usual place of work, or even the actual Christmas party, she was still covered by Workers Compensation insurance.

The Commission accepted that as the event was funded, sponsored and promoted by the employer, it was considered a work event. The real issue in this matter was the location of the injury, that is, on the way to the party as opposed to at the party itself. Ms McCoy argued that she was on a journey to her place of employment, being the party, and that there was a real and substantial connection between her employment and the injury. The Commission found in favour of Ms McCoy and awarded her medical expenses and weekly benefits in respect of the injury.

On the other hand, it is worth nothing that not all injuries that occur in connection to a work Christmas party will be covered by the Workers Compensation scheme. In Whittingham v Ascott Air Pty Ltd, Mr Whittingham, the worker, sustained injury to his right thumb and back at his work Christmas party. There were conflicting reports on the events that occurred leading up to the injury, however, the Commission accepted that the worker was very intoxicated at the time of the accident, as was the other employee involved in the injury, Michael Scott.

Mr Whittingham attempted to charge tackle Mr Scott, but tripped over a gutter, and sustained injuries to his thumb and back. The Commission accepted Mr Whittingham’s argument that the Christmas party was a work function and that the consumption of alcohol at a work function, especially when supplied by the employer, is not “serious and wilful misconduct”. On the other hand, the Commission found that the attempted charge tackle was serious and wilful misconduct, and that this particular action was the cause of the worker’s injuries. Consequently, whilst Mr Whittingham was “at work” when the event occurred, his conduct rendered his employer not responsible or liable for any of his injuries. 

Whilst the two above cases resulted in different outcomes for the parties, the Commission found in both that work Christmas parties are considered to be work events. On a slightly different topic, Collins v Signature Blend Pty Ltd considered whether injury sustained at a work Christmas after party is covered by the scheme. In this case, the worker, Mr Collins, hosted a Christmas after party at his home, in his capacity as the director of Signature Blend Pty Ltd. During this after party, the worker was jumping on his balcony with some employees when he lost his balance, slipped and fell over the railing, falling twenty-five metres to the ground. It had been raining and the Commission accepted that the balcony area was very wet.

After the injury, the worker was conveyed to hospital, where cocaine was found in his system. Mr Collins stated that he did not remember taking cocaine, but that he recalled cocaine being present at the after party. Mr Collins attempted to argue that the after party was a work event, and as such, he sustained injury in the course of his employment. He also attempted to argue that his injury was not primarily caused by his serious and wilful misconduct, that is, consuming cocaine, but rather by the wet balcony.

The Commission accepted Mr Collins evidence in respect to the wet balcony, and found that the wet environment was the primary cause of his injury. Nonetheless, the Commission ruled that as an after party, the event was not an official work function, and thus the injury was not sustained in the course of the worker’s employment.

The central ideas confirmed in these three cases are that employers are usually liable for injuries sustained at, or in connection to, Christmas work functions. Nevertheless, an employee’s serious and wilful misconduct may absolve an employer of its liability and this liability does not extend to any unofficial after parties. 

For more information on the above article we recommend that you contact Accredited Specialist Joe Bonura on 02 4626 5077 or jbonura@marsdens.net.au.

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication

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