I get this error when I disable the taxonomy module. My suggestion to fix it:

function art_terms_worker($terms) {
  $result = '';
$links = array();
  ob_start();?>
   <?php
  $result .= ob_get_clean();
  $result .= t('Tags: ');
  if (!empty($terms)) {
    foreach ($terms as $term) {
      $links[] = l($term->name, taxonomy_term_path($term), array('rel' => 'tag', 'title' => strip_tags($term->description)));
    }
    $result .= implode(', ', $links);
  }
  else {
    $result = '';
  }
  return $result;
}

Greetings,
Andreas