Unfortunately for her, the answer is that employees may be terminated for one-time indiscretions that occur off company prem-ises. First, remember that sexual harassment may exist when workers are exposed to unwanted and offensive behavior of a sexual nature or with sexual overtones. This employee’s behavior may be considered serious enough to cross the threshold of harassment in the company’s interpretation. At the very least, such behavior could be considered a breach of company policy or of the organization’s standards of performance and conduct.
Second, remember that your treatment of an egregious situation like this may create a precedent in terms of how you handle future actions. People tend to remember incidents like this for years to come; if the employee was not discharged, it may be more diffi- cult to discharge workers in the future for similar egregious misconduct.
Finally, remember that at any type of company-sponsored party, your organization can be held liable for employees’ actions during the party as well as for any injuries incurred (yes, that could even mean a workers’ compensation claim in certain states). As a result, you might want to incorporate the following suggestions into your holiday party or picnic plans:
Taken From : The Hiring and Firing Quention and Answer Book

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