Workplace Harassment at Company Dinners: When Dismissal Is Lawful

Company dinners, especially those held around significant dates such as Christmas, are often perceived as social events outside the strict dynamics of the workplace. However, case law has repeatedly emphasized that certain conduct in these settings may still lead to full disciplinary consequences.

A particularly relevant example is the judgment of the High Court of Justice of Galicia dated 19 June 2025 (Appeal No. 860/2025), which has had a notable impact in the field of employment law.

The events at the company dinner

The events took place during the company’s Christmas dinner, organised by a banking institution, held in 2023.

At an initial stage, a senior manager attempted to kiss a female colleague, an advance that was clearly rejected by her.

Later that same night, involving the same individuals, a sexual encounter occurred in the bathroom, specifically oral sex. The senior manager claimed that the act was consensual, while the employee reported it as forced.

Dismissal of the criminal proceedings and opening of the employment route

Before analysing the case from an employment law perspective, it is relevant to note that the events also gave rise to criminal proceedings, which were ultimately dismissed due to the lack of sufficient evidence of a criminal offence.

However, in parallel, the company proceeded to dismiss the senior manager. The dismissal was challenged and led to the judgment analysed in this article.

The approach of the High Court of Justice of Galicia in the employment context

In contrast to the outcome in the criminal courts, the High Court of Justice of Galicia held that, from an employment law perspective, a situation of harassment did exist and therefore declared the dismissal to be lawful.

The Court based its decision on an overall assessment of several key elements.

Key factors in establishing workplace harassment

Among other considerations, the High Court of Justice of Galicia took into account the following factors:

  • Hierarchical position: the dismissed employee was the branch manager, while the female employee was an intern.

  • Age difference, exceeding 30 years.

  • The employee’s situation of vulnerability, aggravated by alcohol consumption, a circumstance confirmed by several witnesses.

These factors led the Court to conclude that the existing power imbalance and the context in which the events occurred prevented the encounter from being regarded as fully free or consensual from an employment law standpoint.

Differences between criminal and disciplinary liability

This case highlights a fundamental issue: employment law and criminal law operate under different rules.

Although both proceedings may stem from the same facts, the criteria for determining liability are not the same. As a result, criminal proceedings may be dismissed while, at the same time, a disciplinary sanction or dismissal may still be fully valid.

The importance of harassment protocols and internal investigations

By way of obiter dicta, the High Court of Justice of Galicia emphasised the importance of:

  • Having a properly drafted sexual and gender-based harassment policy.

  • Establishing an Investigation Committee that operates with procedural safeguards.

  • Properly documenting the conclusions of the internal investigation process.

These elements are essential to uphold the lawfulness of a dismissal for harassment and to protect the company against future legal challenges.

Company dinners are not outside the scope of employment law. Where there is a clear link to the employment relationship, certain conduct may be classified as workplace harassment, even if it does not result in criminal liability.

Prevention, training, and proper internal management of conflicts are key to protecting both individuals and the organisation itself.

We advise companies and human resources professionals on the prevention and management of harassment situations in the workplace, including those arising at corporate events, company dinners or gatherings outside the usual workplace.

We assist in designing effective harassment policies, setting up investigation committees with appropriate safeguards, and developing response strategies that allow companies to act swiftly, proportionately and with legal certainty, minimising legal and reputational risks.

Contact our team to receive specialised advice and ensure legal certainty in the management of these sensitive situations.

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