Each time you host drinks, you risk prosecution

Recent reports of sexual misconduct connected with work drinks have put this hospitable practice under the spotlight. Many people may be unaware that hosting drinks can be illegal. Aimee Dartnall explains.

The law makes it illegal to use any unlicensed premises as a ‘‘place of resort’’ – ie, a place where alcohol plays a ‘‘substantial’’ role in the event. That could be at your office, your local community hall – even your home. Drinking, selling and supplying alcohol at an unlicensed premises is often illegal.

The act expressly allows you to drink in your home and to share your alcohol with guests. Your guests can bring alcohol to give to you, and you can share it with them and any other guests. But they cannot bring alcohol to keep for their own consumption. Nor can they help you pay for yours. Otherwise, you can be prosecuted for letting people drink alcohol at any place you control. For employers, this includes your office. ‘‘substantial’’ part of the event. But it will depend on the occasion: are you having a few beers at a barbecue, or a BBQ to soak up the beers?

In 2015 the host of a house party in Napier did everything right – he hired security to check ID at the door, he checked if he needed an alcohol licence and he spoke to police before the event. When the party got out of control the host helped police shut it down – then was arrested.

The court ruled that police needed only to prove that alcohol was an ‘‘integral part’’ of the event, which was at an unlicensed premises. On this occasion, the host was discharged without conviction.

Again, it depends on how key drinking is to the event. Work drinks can be problematic. Just because police haven’t prosecuted before, doesn’t mean they won’t in future. And there are signs of a growing regulatory intolerance.

Last year, police warned hairdressers in Dunedin against offering a glass of wine to clients. Wine as part of the service is considered a ‘‘sale’’. More recently, police opposed bowling club applications for licence renewal on a technical interpretation of the law, rather than evidence of alcohol-related harm.

The penalties for non-compliance are hefty. You could be fined $40,000 or jailed for three months, for sale and supply, or up to $20,000 for supply alone. Attendees can also be fined $2000 just for being there.

A licence will protect you from prosecution. But the act only allows licences for events where alcohol is ‘‘sold’’ to attendees, so you’ll have to show you will be ‘‘selling’’ drinks. The definition of sale is broad. It could include social club contributions. You can also charge a fee or ask people to pay a koha on entry.

Every time you host drinks, you run the risk of prosecution. If alcohol isn’t a substantial part of your event you should be OK. But you can’t always control people attending events and police may come knocking if things go wrong.

If you want to play it safe, you could hire a licensed caterer or relocate to the pub. Or you can get a licence to cover regular workplace drinks.

Aimee Dartnall is a solicitor at commercial-regulatory law firm Franks Ogilvie.