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company outing law
Company Outing: What Employers Need to Consider Legally!
A successful company outing boosts team spirit. But are you aware of the legal pitfalls? From working time regulations to accident insurance, there are several things to consider. Do you want to ensure that your next company outing runs smoothly and meets all legal requirements? Contact us for personalised advice.
The topic, briefly and concisely
Company outings are not mandatory, but a valuable investment in employee satisfaction and team cohesion. They can improve employee retention by up to 3%.
Take advantage of the tax allowance of 110 euros per employee and event to reduce the costs for your company outing. Careful planning and documentation are essential in this regard.
Please consider the legal framework, especially the voluntary nature of participation, the insurance coverage, and the equal treatment of all employees, to ensure a successful and legally compliant company outing.
Planning a company outing? Learn all about the legal framework, from voluntary participation to tax deductibility. Get informed now!
An office outing is more than just a pleasant excursion – it is a strategic tool for fostering workplace atmosphere and team collaboration. But what exactly constitutes an office outing and what legal regulations need to be considered? The office outing is an employer-initiated, voluntary event, typically designed as a day trip. The goal is to improve the work environment and strengthen team cohesion. The legal framework is crucial to safeguard the interests of both the employer and the employees. Adhering to these rules ensures that the office outing becomes a positive experience for all involved.
What makes a successful office outing?
An office outing primarily aims at enhancing the workplace atmosphere and team collaboration. It is a voluntary event initiated by the employer. Unlike other company events, the focus here is on the social aspect. The outing should provide employees with the opportunity to get to know and interact with each other in a relaxed atmosphere, which can positively impact day-to-day collaboration. Such an outing can also serve to express the employer's appreciation towards their employees. The design of the outing can vary from cultural visits to sporting activities. It is important that the event aligns with the employees' interests and contributes to strengthening the sense of community. According to Personio, an office outing is a voluntary event aimed at improving the work climate and reinforcing team cohesion. Participation is voluntary, but if the outing takes place during regular working hours, employees who do not wish to participate must work.
Office outings: Not mandatory, but a sign of appreciation
In principle, there is no legal obligation for employers to organise an office outing. An exception is the so-called company practice. This arises when an employer has organised an office outing regularly over a period of at least three consecutive years. In this case, employees may acquire a legal entitlement to such an outing. However, the employer can negate this entitlement by explicitly highlighting the voluntary nature of participation in the invitation. This should be clearly and unequivocally stated to avoid misunderstandings. The voluntariness of participation is a key aspect influencing the legal classification of the office outing. According to likedeeler.net, employers are not obliged to organise office outings, unless there is a company practice or a corresponding agreement. To avoid a legal claim, employers should clearly indicate the voluntary nature in the invitation.
Voluntary participation: Working hours and no entitlement to overtime
Participation in an office outing is fundamentally voluntary. However, if an employee participates in the outing during their regular working hours, this time is credited as working time. There is, however, no entitlement to overtime if the outing extends beyond regular working hours. This is particularly relevant if the outing takes place in the evening or at the weekend. Employees who do not wish to take part must pursue their regular duties during working hours. The employer is obliged to provide them with appropriate work options. Further information on crediting as working time can be found in our article Office Outing and Working Time. According to younited.de, an office outing during regular working hours counts as working time. However, generally, there is no entitlement to overtime for activities in the evening or at the weekend, as participation is voluntary. Employees not participating must be able to undertake their regular duties during working hours.
Equal treatment: Ensure satisfaction and avoid discrimination
A fair and just treatment of all employees is crucial for a positive working environment. This also applies to company outings. Every employee has the right to participate in such an outing, and no employee should be excluded. This applies even to employees who have already left the company. The principle of equal treatment is central here to avoid discrimination and dissatisfaction. The correct application of this principle helps ensure that all employees feel valued and boosts team motivation.
Right to Participate for All: Avoid Exceptions
In principle, every employee, including retirees, has a right to participate in a company outing. However, it is possible to divide employees into departments if this is necessary for organisational reasons. It is important that the division does not appear discriminatory and offers all employees the same chance to participate. The organisation should be transparent and comprehensible to ensure employee trust. The opportunity to participate should be actively communicated to ensure that all employees are informed and can register. The eligibility to participate also extends to part-time or temporary employees. According to Personio, the principle of equal treatment means that the outing must be open to all employees, even those who have left the company.
Alternative Work Performance: Offer Meaningful Tasks for Non-participants
Employees who do not wish to participate in a company outing are required to perform an alternative work task during this time. The employer must provide them with appropriate work opportunities. This can include completing tasks in the office or home office. However, if the company is closed, the employer should offer alternative solutions, such as the option to work from home. It is important that employees who do not participate are not disadvantaged and receive their regular pay. Further information on the voluntary nature of participation can be found in our article Company Outing: Voluntary or Mandatory?. According to advocard.de, employees are not obliged to participate in company outings. If the outing takes place during regular working hours, employees who do not participate must work. The employer cannot force employees to take leave if they do not participate in the outing.
Ensure Safety: Protect Your Employees During the Outing
The employer has a duty of care towards their employees. This means that they must ensure the safety and well-being of employees during the company outing. This includes clearly communicating the start and end of the outing to ensure insurance coverage. Additionally, the employer should advise on appropriate behaviour, particularly regarding alcohol consumption. It is advisable to set behavioural guidelines and communicate these to employees before the outing. The employer should also ensure that sufficient staff are available to supervise the employees and provide assistance in case of emergency. The safety precautions should be tailored to the nature of the outing. According to teamgeist.com, it is essential to communicate clearly when the company outing begins and ends to ensure that employees are covered by statutory accident insurance during this time. The company's insurance does not cover accidents that occur outside the official timeframe or on detours.
Accident insurance: Protection during company outings – Mind the limits
Insurance coverage plays an important role in company outings. The statutory accident insurance applies under certain conditions and covers accidents that happen during the outing. However, there are also limitations, particularly in cases of personal negligence or alcohol abuse. Employers should therefore be informed about the exact conditions in advance and inform their employees accordingly. Clear communication and the adherence to certain rules can help ensure insurance coverage and minimise risks.
Accident insurance: When the insurance pays
The statutory accident insurance covers accidents that occur during a company outing, provided certain conditions are met. This includes that the outing is initiated by the employer, takes place under supervision, and at least 20% of the workforce participates. The direct route to and from the venue is also insured. However, the accident insurance does not apply if the accident happens on a detour or after the official end of the outing. It is therefore important that the employer clearly defines and communicates the start and end of the outing. According to betriebsrat.de, the company outing is covered by the statutory accident insurance. However, the accident insurance does not apply if the accident happens on a detour or after the official end of the outing.
No cover for drunkenness: Avoid alcohol abuse
Insurance coverage lapses if an accident is due to personal negligence or alcohol abuse. Therefore, someone who causes an accident while drunk cannot rely on statutory accident insurance. Even in cases of gross negligence, such as ignoring safety regulations, insurance coverage can be limited. It is advisable to moderate alcohol consumption during the outing and adhere to safety regulations. The insurance also does not cover accidents involving family members or friends who are not part of the insured employees. According to papershift.com, insurance coverage does not extend to family members or incidents caused by excessive alcohol consumption or negligence.
Disciplinary actions: Consequences of misconduct
During a company outing, disciplinary actions such as warnings or even termination of employment may be threatened in case of misconduct. This particularly applies to gross misconduct, such as insults, damage to property, or violations of company policy. To avoid such situations, it is advisable to remind employees of appropriate behaviour before the outing and to avoid sensitive topics as well as excessive alcohol consumption. In serious cases, legal advice should be sought to determine the appropriate steps to take. The consequences of misconduct can vary depending on the severity of the violation. According to personio.de, gross misconduct during the outing can lead to disciplinary actions up to and including termination. It is advisable to remind employees of appropriate behaviour before the outing and to avoid sensitive topics as well as excessive alcohol consumption.
Make the most of tax allowances: Reduce the costs of your company outing
The tax treatment of company outings is an important aspect of planning and execution. The legislature grants an allowance for company events, allowing companies to claim the outing costs for tax purposes. However, it is essential to know and comply with the exact provisions to optimally utilise the allowance and avoid tax disadvantages. Careful planning and documentation are indispensable here.
£110 Allowance: How to Use it Optimally
For company events, an allowance of £110 per employee and event applies (a maximum of two per year). This amount includes VAT and applies to all costs incurred in connection with the outing, such as food, drinks, accommodation, travel expenses, music, gifts, and costs for accompanying persons. It is an allowance, meaning only the amount exceeding £110 is taxable. The tax regulations are laid down in the Income Tax Act. According to haufe.de, an allowance of £110 per employee and event applies (a maximum of two per year). This amount includes VAT and applies to all costs incurred in connection with the outing.
Cost Division: How to Correctly Calculate the Allowance
In the calculation of the allowance, the costs are divided among all participants, including accompanying persons. The costs for accompanying persons are attributed to the respective employee. If costs per employee exceed the allowance of £110, the excess amount is taxable. Therefore, it's crucial to carefully calculate and document the costs to fully utilise the allowance. The calculation must be transparent and verifiable. According to haufe.de, in the calculation of the allowance, the costs are divided among all participants, including accompanying persons. The costs for accompanying persons are attributed to the respective employee.
Participant List: Proof for the Tax Office
To claim the allowance, a participant list for the tax office is required. This list serves as proof of the actual number of participants and must be diligently maintained. Additionally, a swift registration with payroll is necessary to benefit from the tax advantages. A ruling by the Federal Social Court (BSG) in April 2024 (ref. B 12 BA 3/22 R) has clarified the conditions for social insurance exemption in connection with flat-rate taxation. The documentation obligations are laid down in the Income Tax Act and the payroll tax guidelines. According to likedeeler.net, a participant list is required for the tax office to claim the allowance. This list serves as proof of the actual number of participants and must be diligently maintained.
Involve the works council: Consultation ensures acceptance and a smooth process
The role of the works council in company outings is limited. While the works council does not have a co-determination right in deciding whether an outing takes place, it can play an important advisory role. Involving the works council in the planning can help consider the interests of the employees and organise a successful outing. Therefore, it is advisable to involve the works council early in the planning process.
Decision-making power: Employer decides on the outing
The decision to organise a company outing rests solely with the employer. The works council does not have a co-determination right in this decision. Similarly, in the calculation of participation time as working time or in the design of the outing, the works council has no co-determination rights, as it is not considered a social facility. The decision-making power lies exclusively with the employer. According to betriebsrat.de, the works council has no co-determination right in deciding whether a company outing takes place. It also has no co-determination rights when it comes to accounting for participation time as working time or designing the outing.
Inclusion recommended: Ensure acceptance by the works council
Although the works council does not have co-determination rights, it is advisable to include it in the planning of the company outing. This is especially true if the outing is used as a reward or bonus. In this case, the works council has limited co-determination rights, unless individual agreements have been made with the employees. The inclusion of the works council can help increase the acceptance of the outing among employees and ensure smooth execution. According to papershift.com, the works council has limited co-determination rights if the outing is used as a reward or bonus, unless individual agreements have been made with the employees.
Successful planning: How to make your company outing an unforgettable highlight
Careful planning is crucial for the success of a company outing. Numerous aspects need to be considered, from emphasizing voluntary participation to clearly defining the start and end of the outing. Ensuring equal treatment of all employees is also important. Good planning helps make the outing a positive experience for everyone involved and achieves the desired goals.
Emphasize Voluntariness: Avoid Mandatory Participation
It is important to clearly emphasize the voluntariness of participation in the company outing in the invitation. This helps to avoid giving the impression of compulsion and increases acceptance of the outing among employees. The communication should be clear and unequivocal. According to teamgeist.com, it is important to clearly emphasize the voluntariness of participation in the company outing in the invitation, to avoid giving the impression of compulsion and increase acceptance of the outing among employees.
Set a Timeframe: Ensure Insurance Coverage
To ensure insurance coverage, the official timeframe of the company outing should be clearly defined and communicated to employees. This includes the start and end of the outing as well as the times for arrival and departure. The definition of the timeframe should be done in advance and be known to all involved. According to younited.de, the official timeframe of the company outing should be clearly defined and communicated to employees to ensure insurance coverage. This includes the start and end of the outing as well as the times for arrival and departure.
Open Participation: Equality for All Employees
It should be ensured that participation in the company outing is open to all employees. If necessary, a division by departments can be made to facilitate organization. It is important that the division does not appear discriminatory and gives all employees an equal opportunity to participate. The participation should be actively encouraged. According to factorialhr.de, it should be ensured that participation in the company outing is open to all employees. If necessary, a division by departments can be made to facilitate organization. It is important that the division does not appear discriminatory and gives all employees an equal opportunity to participate.
Innovative company outings: Foster team spirit and sustainability
Company outings are no longer just traditional day trips. Modern companies are focusing on innovative formats that better meet the needs of employees and the goals of the company. These include team-building measures, experiential activities, sustainable concepts, and virtual alternatives. The variety of options allows for outings to be tailored individually, creating added value for all involved.
Team-Building: Strengthening cooperation and cohesion
Team-building activities and experiential exercises can help to enhance cooperation and cohesion within the team. This can be achieved through shared sporting activities, creative workshops, or interactive games. The activities should be designed to strengthen communication and collaboration among employees. GoTuro offers you a variety of opportunities for unforgettable outdoor team-building events that boost team spirit and promote collaboration.
Sustainability: Focusing on environmental awareness
Sustainability and environmental awareness are increasingly important in planning company outings. Companies can choose environmentally friendly activities and travel options to contribute to environmental protection. This could be through the use of public transport, conducting conservation projects, or supporting local suppliers. Sustainability should be considered in all decisions. According to anwalt-suchservice.de, companies can opt for environmentally friendly activities and travel options to contribute to environmental protection. This can include using public transport, implementing conservation projects, or supporting local businesses.
Virtual Alternatives: Enabling participation for everyone
Digitalisation and virtual company outings offer an alternative for remote teams, enabling participation for all employees, regardless of their location. This can be through virtual conferences, online games, or joint virtual tours. The virtual formats make it possible to bring together geographically separated teams and strengthen cohesion. GoTuro offers you innovative party trips and virtual formats, enabling geographically separated teams to come together and strengthen cohesion.
Budgetplanung: Keeping an Eye on Costs – How to Calculate Correctly
The costs for a company outing can quickly escalate. Therefore, careful budget planning is essential to avoid exceeding the financial limits. It is important to consider all relevant cost factors, from travel expenses and catering to on-site activities. A transparent cost breakdown helps to keep track and avoid unnecessary expenses. Additionally, it should be examined which costs are tax-deductible to make optimal use of the budget.
Consider all cost factors: Travel, Catering, Activities
When calculating the budget, all relevant cost factors must be taken into account. This includes travel expenses, catering, costs for on-site activities, and any accommodation costs. Incidental costs such as tips or parking fees should also be planned for. A detailed cost breakdown helps to maintain an overview and avoid unexpected expenses. The cost planning should be realistic and transparent. According to haufe.de, all relevant cost factors must be considered when calculating the budget. This includes travel expenses, catering, costs for on-site activities, and any accommodation costs.
Take advantage of tax benefits: Use allowances optimally
It should be examined which costs are tax-deductible and which allowances can be utilised. The allowance of 110 euros per employee and event can help to reduce the tax burden. However, it is important to be aware of and comply with the exact regulations to make the best use of the allowance. The tax deductibility should be checked in advance. According to likedeeler.net, it should be examined which costs are tax-deductible and which allowances can be utilised. The allowance of 110 euros per employee and event can help reduce the tax burden.
Keep an eye on costs per employee: Ensure budget control
The costs per employee should be monitored to prevent exceeding the budget. It is advisable to set a maximum amount per employee and adjust the planning accordingly. The number of participants should also be considered, as it directly impacts total costs. Further information on costs can be found in our article on company outing costs per employee 2025. Cost control is crucial for the financial success of the outing. According to factorialhr.de, the costs per employee should be monitored to avoid exceeding the budget. It is advisable to set a maximum amount per employee and adjust the planning accordingly.
Conclusion: Invest in employee satisfaction with successful company outings
More useful links
On the Personio page, you will find information about eligibility and equal treatment at company outings.
Advocard provides legal advice on company outings, particularly about the voluntary nature of participation.
Betriebsrat.de informs about the role of the works council and accident insurance coverage at company outings.
Haufe explains the tax regulations and exemptions for company events.
FAQ
Is there a legal obligation to conduct company outings?
No, there is generally no legal obligation for employers to hold a company outing. An exception is the so-called company practice, which can arise after at least three years of regular occurrence.
What should be considered regarding voluntary participation?
Participation in a company outing is generally voluntary. Employers should explicitly mention the voluntary nature in the invitation to avoid creating a legal claim. Employees who do not participate must be able to attend to their regular duties during working hours.
How are company outings treated for tax purposes?
For company events, there is a tax allowance of 110 euros per employee per event (maximum two per year). This amount includes VAT and applies to all costs associated with the outing. A participant list is required for the tax office.
What role does the works council play in company outings?
The works council has no right of co-determination regarding the decision to hold a company outing. However, it is advisable to involve the works council in the planning to increase acceptance among employees.
Are employees insured against accidents during the company outing?
Yes, the statutory accident insurance covers accidents that occur during a company outing, provided the outing is initiated by the employer, is supervised, and at least 20% of the workforce participates. Abuse of alcohol may jeopardize insurance coverage.
What happens if an employee misbehaves during the company outing?
In cases of misconduct during a company outing, disciplinary actions such as warnings or dismissal may be imposed. It is advisable to remind employees of appropriate behaviour before the outing.
What applies if a company outing takes place during regular working hours?
If the company outing takes place during regular working hours, this time is counted as working time. However, there is no entitlement to overtime if the outing extends beyond regular working hours.
Can employees be excluded from participation?
No, in principle, every employee, including those leaving the company, has a right to participate in a company outing. The principle of equal treatment is crucial in this context.
