Our business employs a significant number of young people. We were approached to sponsor their kit for a tag rugby league. The league designed the kit to include our business logo. Our business didn’t pay the entry fee, the activity wasn’t during working hours and it was organised by the staff completely independently from the business.
One of the staff sustained a significant knee injury. The office manager has received advice that because the business sponsored the gear, we are liable for any expenses incurred by the injured worker. Is this correct? I can’t imagine anyone would sponsor anything if this was the case?
To answer this query, we spoke to experts working in employment law and human resources for their perspectives.
From an employment liability perspective, the sponsorship of gear would not make an employer responsible for the consequences of partaking in sport, nor would the employer be liable for any injuries incurred, says Anne O’Connell, principal of employment law firm AOC Solicitors.
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“Just because they sponsored the jerseys does not make them liable for whatever happens on the pitch, it’s absolute nonsense,” she says.
If they requested the employees to represent the company at this event, then there could potentially be a liability, but I’m sure there would be waivers signed in that case
— Anne O'Connell, AOC Solicitors
Based on the information received, solely sponsoring sports gear should not attach any liability, she says, adding that the advice received by the employer in this case “does not add up”.
“I don’t know where they got this advice, but I would be going for a second opinion,” O’Connell says, adding: “People run for hospitals, and they wear sponsored hospital T-shirts, if they fall during the run, the hospital isn’t liable just because they’re wearing the T-shirt.”
If it was the case that the tag rugby league was organised by the employer, there is potential for the extension of employer liability, she says.
“If they requested the employees to represent the company at this event, then there could potentially be a liability, but I’m sure there would be waivers signed in that case,” she says.
There can be “blurred lines” in terms of what employers can be ultimately responsible for when it comes to health and safety, says Damien McCarthy, founder and chief executive of consultancy firm HR Buddy, who described the reader’s query as a good example of such.
“I’d be surprised if the legal opinion was they would be liable,” he says.
“It’s important for workplaces to have clear policies and guidelines with regards to these types of events,” he says. The policies should explain the company’s responsibilities or lack thereof to avoid any confusion down the line.
This example shows you how the culture has changed in comparison to times past
— Damien McCarthy, HR Buddy
McCarthy says employers should be clear on what constitutes a workplace event, where employers can be liable for injuries.
Work events which can constitute extensions of the workplace would include Christmas parties or summer events.
He advises employers in similar scenarios to communicate clearly, fairly and “compassionately” with any employee who believes the company is responsible for an injury, even when they are not.
In doing so, they avoid damaging the employer-employee relationship.
Sponsorship in general can be a good way for companies to connect with local communities, he says.
However, “this example shows you how the culture has changed in comparison to times past”, he says, adding that incorrect assertions that employers could be deemed negligent through having sponsored gear are “unfortunate” and “completely wrong”.
It seems that personal injury cases against companies have become a more common occurrence, and McCarthy says such concerns have certainly become a more common worry for employers.
“It is something that employers have a heightened awareness of now,” he says. Health and safety has improved over recent decades, but injuries still occur.
“It is something that employers very much need to be aware of,” but in this particular example, “there’s nothing for the employer to worry about, I would think,” he says.
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