Advice

Christmas party obligations

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: 

  • What are your obligations as an employer?
  • How can you ensure your social event provides for a safe environment with clear behavioural expectations? 
  • What to do if issues or concerns arise at our holiday event? 

Your duty to provide a healthy and safe work environment under the Health and Safety at Work Act 2015 may extend to your workplace Christmas party. If the event is organised, promoted, or funded by the business, it could be considered an extension of the workplace.

That means you should take all reasonably practicable steps to identify and manage risks. Failing to do so could expose your business, and in some cases individuals within the business, to health and safety consequences.

Risks aren’t limited to slips, trips, and injuries. They can also include inappropriate behaviour such as bullying, harassment, or discrimination.

Tips to reduce risk at your Christmas function 

Policy review/update 

Before your event, check that your workplace policies are up to date and clearly understood. This might include your House Rules, Code of Conduct, and Health & Safety Policy. Staff should know what behaviour is expected and the consequences of any breaches.

Set expectations early 

A reminder before the event can go a long way. Let employees know that workplace policies and behavioural standards continue to apply at work-sponsored functions. Misconduct at a Christmas party can still lead to disciplinary action.

Looking after employee wellbeing 

If alcohol will be available, make sure there is plenty of food and a range of non-alcoholic drinks on offer. Consider ways to manage alcohol consumption and nominate a responsible person to monitor any health and safety concerns throughout the event.

Help staff get home safely 

While you’re not required to provide transport, you should consider how employees can get home safely after the event. Share public transport options, arrange taxi vouchers, or encourage designated sober drivers where appropriate.

Consider your guest list

Inviting partners or friends can increase risks by adding more people to manage, particularly where alcohol is involved. Remember that workplace policies may not apply to guests in the same way they apply to employees.

If something goes wrong

If something untoward does happen at the Christmas party, you should first conduct a fair investigation in good faith before deciding the next steps. For further guidance on this, see our Guide to Managing People.

Staff holiday gifts

If you’re giving gifts to employees, remember to include everyone, including team members who are away on leave or otherwise absent. Consistency is important, so consider giving the same gift to all employees to avoid any perception of unfair treatment.

In many cases, non-cash gifts can be claimed as a business expense, although Fringe Benefit Tax may apply. Check with your accountant when planning your holiday budget.

You should also confirm with your accountant which Christmas function expenses may be deductible for GST and income tax purposes.

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.

Visit our Christmas Hub for more tips to help prepare your retail business for Christmas!

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