In the process of planning your Christmas party?
Did you know your responsibilities as an employer are likely to apply to your end-of-year celebration too? Read below to learn more about your obligations.
We are approaching the Christmas season at speed! Before sending out that Christmas party invitation to your team, it’s important you understand your obligations across three key areas:
Your obligation to provide a healthy and safe work environment under the Health and Safety Act 2015 could very well apply to your end of year Christmas party too. If your party is organised, promoted, and funded (either partially or wholly) by the employer, then it may be considered an extension of the workplace.
For this reason, it is very important that you consider taking all reasonable steps to minimise any identified risks. If anything were to happen at the party, worst case scenario is that your business (or even individual employees of the business) can be held responsible for any health and safety breaches, for failing to provide an environment that is safe and without risks to health.
Incidents include any kind of accident that causes harm, illness, or injury, but could also include inappropriate behaviour, like sexual harassment or bullying.
Our tips for minimising risk
Policy review/update
It’s a good time to review and ensure that your current workplace policies are both up to date and fit for purpose, this may include house rules, code of conduct or your health and safety policy. These should clearly outline what is and isn’t acceptable conduct from employees, and the potential consequences if there is a breach of company policy.
Set expectations early
Before the celebrations begin, consider reminding staff of the abovementioned policies, and that there is potential of them facing disciplinary action for their actions at the party, as the terms and conditions of their employment agreement and any applicable company policies continue to apply for the duration of the function.
Looking after employee wellbeing
A responsible host is obligated to provide adequate food, particularly if alcohol is being consumed. Consider taking steps to limit alcohol availability if there is a bar, and make sure there is a good range of non-alcoholic options available too. Consider appointing a health and safety representative at the function to keep an eye on proceedings, and to identify and mitigate any potential risk during the event.
Consider transport options
Consider how your employees will get home from the function. There is no obligation for you to provide transport, however your health and safety responsibilities do mean that you need to put steps in place to make sure staff are able to get home safely. You could advise employees of the public transport available in advance, arrange taxi vouchers before the party ends, or ensure there are enough sober drivers to get everyone home safely.
Oh no, something happened!
If something untoward does happen at the Christmas party, you should first conduct a fair investigation in good faith before deciding the next steps. Our Advice Service can help you work through this process, and provide you with the appropriate templates. Get in touch on 0800 472 472 (Australia freephone 1800 128 086), or at [email protected]
Holiday Gifts
If you are giving holiday gifts to your staff, make sure to include everyone in the company. That means saving/setting aside extra gifts for employees who may be absent or away on leave! Also, it is recommended to give the same gift to everyone, to avoid perceptions of unfair treatment.
You can generally claim the cost of gifts (excluding cash gifts or bonuses), as a business expense. However, you may need to pay Fringe Benefit Tax on these. Make sure to check with your accountant when planning your gift budget.
Also confirm with your accountant how much of your holiday function expenses may be claimed as an expense in your GST and income tax returns.
Need more information?
We understand that navigating your holiday obligations can feel overwhelming. If you would like clarification on anything in this article, or if you would like advice on a specific situation, do not hesitate to email us at [email protected] or give our Advice Service a call on 0800 472 472 (or 1800 128 086 from Australia).
If you’re not ready to join yet, consider trying our Pay-As-You-Go Advice Service! You can purchase individual Advice Sessions as and when required. If you love the service and decide you’d like unlimited access, we will discount the cost of the session from your annual membership fees.
