Hangovers are becoming a hidden driver of workplace absence, with new research suggesting that alcohol-fuelled work social events are damaging employee productivity and harming the economy.
A report from the Institute for Public Policy Research (IPPR) found that one in three UK workers called in sick over the past year after drinking with colleagues. The report warns that alcohol-related absence and presenteeism — where staff attend work but function at reduced capacity — pose “a significant threat to the UK’s economic performance”.
Based on a nationally representative survey of more than 2,000 adults, the study revealed that 22 percent of workers admitted to working while hungover, and 29 percent said they had witnessed colleagues performing sluggishly the day after drinking. Heavy drinkers were found to be three times more likely to exhibit presenteeism compared with others.
Dr Jamie O’Halloran, senior research fellow at IPPR and lead author of the report, said the scale of the problem went beyond individual health. “When nearly half of young professionals are calling in sick after workplace drinking, it’s not just a hangover; it’s a productivity crisis,” he said. “If the government is serious about growth, it needs to take alcohol harm seriously too.”
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Young workers most affected
The report found that younger staff, especially those aged 18 to 24, were significantly more likely to miss work due to drinking at work-related events. Some 43 percent of this age group reported calling in sick after such events, and more than one in three said they felt pressured to drink in order to fit in or progress professionally.
Despite the shift in drinking habits — recent data show that one in five people in Generation Z do not drink alcohol — many workplaces have yet to adapt their approach to social events. More than half of employees said their employer had not provided guidance, training or inclusive alternatives to drinking.
Experts say the workplace culture around alcohol needs urgent attention. “Employers have a huge opportunity here. By shifting away from alcohol-centric cultures and offering real support, they can boost wellbeing, improve performance, and build more inclusive workplaces,” said Sebastian Rees, head of health at IPPR. “This isn’t about banning drinks; it’s about giving people the choice to thrive without pressure.”
Drinking creates ‘cliques and misconduct’
Beyond lost productivity, the report highlights other workplace risks tied to alcohol. One in five workers said they had said something they regretted to a colleague while drinking at a work event. More than a quarter had overheard something they should not have, and 28 percent said workplace drinking created social cliques or divisions among staff.
Despite these issues, the report found limited employer action. Many organisations continue to focus social events around alcohol, without offering alternatives. Researchers recommend replacing or supplementing pub-based events with activities such as yoga, group walks or creative workshops, which are more inclusive for non-drinkers and those cutting back.
A ‘balancing act’
Kate Palmer, employment services director at HR consultancy Peninsula, said employers must balance team bonding with professionalism. “After work drinks or social events can be good opportunities to celebrate successes and key achievements. They can also be good for team building. However, there is the potential for things to quickly spiral out of control, especially when the alcohol starts flowing,” she said.
“Work events can be seen as an extension of the workplace, so it’s important for employers to ensure they are inclusive for all staff members. This may include providing non-alcoholic alternatives to drinks on offer.”
Palmer said employers should clearly communicate expectations around behaviour and manage any incidents through the usual disciplinary process. “When it is believed an employee hasn’t turned up to work due to a hangover, employers may want to quickly take action. Ultimately, any absence should be dealt with through the company’s usual absence management process.”
She advised having clear procedures that include return-to-work meetings and defined thresholds for triggering formal action in cases of persistent absence. “This will help deter employees from taking time off sick for hangovers,” she said.
The findings come amid a wider rethink of workplace culture as employers navigate hybrid working patterns, wellbeing priorities and retention pressures. With younger generations showing lower tolerance for drinking as a default social setting, experts say firms must modernise their approach to bonding and reward.
