Helen Lacey 020 7770 7697 / helen.lacey@which.co.uk

Cancelling the office Christmas party could be costly

Companies considering cutting costs and cancelling their office party this Christmas should think twice as they may end up out of pocket, says Which? Legal Service, the telephone legal advice service from consumer organisation Which?. 

As Christmas fast approaches, the office party is usually getting into full swing, with staff looking forward to enjoying a drink, a dance and some office networking.  However, as the credit crunch sees many businesses cutting costs, scores of companies are cancelling parties they have already booked for their staff.

But simply cancelling might not be the easy option that it seems.  Once a party has been booked, companies cannot cancel, even if they haven’t left a deposit, unless the venue’s terms and conditions give them the right to do so.  A restaurant can claim their financial losses if a group fails to turn up for a booking which may include the cost of marketing, administration and loss of profit. 

Monica Jaimini, Lawyer at Which? Legal Service, explains:

“Although restaurants may not hold you to it, at this time of year when everyone books up for Christmas, ducking out of a restaurant booking, especially if it’s for a large group, could cost you dearly. 

“Venue operators are well within their rights to go after you for their losses if they can’t fill the booking.  However, they definitely can’t make double profit by charging you and then finding another party to replace your booking.  This can be difficult to prove, but it might be worth a quick call on the night to see if they are still selling tables.  Always check the venue’s terms and conditions before booking to avoid any problems”.

For further information, or an interview with Which? Legal Service, contact Helen Lacey on 020 7770 7697 or helen.lacey@which.co.uk

(5/12/08)

(5/12/08)