Employer-sponsored walks, sports teams, and even in-house gyms can help in the recruitment and retention of valuable, talented staff. But what if a staff member is injured while taking part in such activities? Is the employer liable?

The employer’s liability depends on a number of factors that shed light on the question of whether the employer ‘induced or encouraged’ the employee to take part in the activity. If this is found to be the case, it’s likely to satisfy the requirement that the worker’s employment was a ‘substantial contributing factor’ to the injury. Therefore, the injury will be compensable, and the employer will be liable.

For example, in a recent case where a staff member injured their shoulder while using the company’s on-site gym facilities, the worker won their bid for compensation after a tribunal ruled that their injury was work-related. In that case, the worker argued that the company's on-site gym was portrayed in the job ad and on its website as an inducement to come and work there. The staff member’s employment agreement included a membership application form with a code of conduct for the gym. The employer provided the gym, allowed access, and provided an induction course for its use. This amounted to clear authorisation and encouragement to use the gym, so the employer was liable for the injury.

Employers are also likely to be liable for injuries sustained while participating in a sport or other activity held during working hours.

Similarly, the employer may be liable if the company sponsors employees’ participation, makes donations, pays registration fees and/or the cost of shirts, uniforms or equipment, or management organises – or encourages or acquiesces in or supports – the activity, and the employer derives some benefit. Under these circumstances, the employer may be liable regardless of whether the activity takes place during working hours, during a work break or outside the employee’s usual working hours.

Conversely, if the employer does not in any way induce, encourage or support a worker’s participation in a sporting activity at lunchtime or during a work break, it is likely to be considered that the worker voluntarily subjected himself or herself to the risk of injury and that the activity was not undertaken in the course of the worker’s employment. In this case, the injury would not be compensable, and the employer would not be liable.

 

What should employers do?

As with so many other things, employers need to weigh up the risks and benefits of such activities. A workplace culture that puts a positive value on good health and encourages physical fitness can bring long-term benefits to both employers and employees. It can contribute to a reduction in sickness absence, reduce staff turnover rates, and increase the level of staff morale and commitment to the job.

To reduce the potential for injuries during employer-sponsored sporting activities, it is worth considering the different risks entailed in the various kinds of activities and making informed choices about the type of sport or activity to be supported.

Heavy contact sports such as rugby pose a greater risk of injury than other sports like cricket, golf, jogging or swimming. Heading the ball during a soccer game carries a definite risk of concussion. Heart attacks while playing squash or basketball do happen from time to time, due to the high level of exertion during a game, so it should be recognised that intense, vigorous sporting activities may pose dangers to people with pre-existing heart disease. Yoga or tai chi classes, or sponsored walks, would in general present lower levels of risk.

 

Play it safe

Take advantage of the relevant guidelines such as the sports fact sheets available from Sports Medicine Australia to ensure any sponsored or supported sporting activities are run with established safe ground rules. Let everyone know of the risks, ways of preventing injuries and what is considered acceptable – and unacceptable – behaviour.

As relevant, make sure the site is prepared and safe, and that all the necessary equipment is available. If the venue for the sport or activity is off-site, check any venue-specific insurance or safety requirements.

If you become aware of a lunchtime sporting activity you don’t support, make sure participants know you are not supporting or encouraging it.