This depends on various factors, such as the agreements made in the employment contracts, the type of event and the timing of the measure.
If the employment contract includes an obligation to participate in team events, this obligation can usually only apply within the agreed working hours.
If the team-building program is similar in nature to a company outing, it is usually not possible to derive any obligation from it. If the measure is similar in nature to further training, it may well be mandatory.
If the event is considered mandatory and takes place during normal working hours, it counts as working time. The situation may be different if participation is voluntary and takes place in the evening, for example. It is best to clarify this point with management and the works council before the event and ensure transparency for all parties involved in advance.
IMPORTANT: These statements have not been legally reviewed and are merely our assessments.
Team-building programs and measures are generally considered company events. This means that they are also tax-deductible as business expenses. Here, too, the nature of the event is important: if it is a company outing, tax limits of currently £110 per employee per year (subject to change) apply; if the event is considered further training, there are no tax limits.
IMPORTANT: These statements have not been verified for tax purposes and are merely our assessments.
- Define and communicate clear objectives
- Promote your team-building initiative internally to motivate everyone in the team to participate actively
- Work with professionals, bearing in mind that the biggest investment in the initiative is the participants’ working time
- Use modern formats to offer something new (many participants have already done the standard activities)
- Allow sufficient time in the agenda, as the activity should be beneficial and not become a token event.
- Conduct feedback sessions and make the learning transparent, as this increases the benefit exponentially.
- Regular team-building programs increase team success in the long term.
