Tinsel, Tipsy Staff and Trouble: What Employers should avoid this holiday season

Employment Law: 10 December 2025

Author: Bianca Mazzarella - Our People

Every year, as the festive season approaches, many organisations find themselves preparing not just for celebration but for the potential issues that may ensue long after the Christmas decorations come down.

The work Christmas party, intended to reward staff and build morale, can all too easily lead to issues that spill over into the New Year. Inappropriate behaviour, misunderstandings about acceptable conduct, and the blurring of professional boundaries can create grievances, damage workplace culture, and expose employers to legal and reputational risks.

With new obligations to identify and manage psychosocial hazards in the workplace and reud, this year employers have even more reason to ensure their Christmas parties are safe, inclusive and well managed.

To avoid the festive fallout, employers should take proactive steps to manage risks at Christmas events.

Practical tips for employers with psychosocial risks in mind

Set clear expectations early

• Send a friendly pre-event reminder that workplace policies i.e in relation to conduct, discrimination, harassment, bullying apply at the Christmas function.
• Emphasise that the event is work-related, even if held off-site or after hours.
• Specify the time/duration of the event to protect the business.

Manage alcohol responsibly

• Avoid unlimited or “open bar” arrangements.
• Provide non-alcoholic alternatives.
• Ensure food is available throughout the event.
• Consider appointing responsible managers to discreetly monitor alcohol consumption.

Actively identify potential psychosocial hazards

• Identify risks such as exclusion, sexual harassment, power imbalances, conflict between employees, or potential misconduct.
• Ensure potential psychosocial hazards are eliminated where possible and if not practicable ensure appropriate policies are implemented to mitigate such risks.
• Aim for a setting and structure that supports psychological safety—for example, a seated dinner or structured activities.

Brief managers on their role

• Managers should model appropriate behaviour and know how to address issues early, discreetly, and respectfully.
• Managers should be trained in relation to applicable workplace policies.
• Encourage them to keep an eye out for escalating behaviour or signs of discomfort among staff.

Provide safe travel options

• Arrange transport, communicate local options, or provide taxi/ride-share vouchers.
• Ensure staff leaving alone or late at night have a safe way home.

Set boundaries around after-parties

• Clarify that the official event ends at a certain time and that any “after-party” activities are not employer-sanctioned.
• Encourage managers not to attend or organise unofficial after-hours drinking sessions.

Prepare for the unexpected

• Have a plan for managing unacceptable behaviour, including who will step in and how it will be handled.
• Ensure there are designated senior persons that remains sober and alert throughout the evening.

Follow up appropriately

• If an incident occurs, address it promptly, fairly, and confidentially.
• Ensure any incidents are appropriately investigated in accordance with workplace policies.

By communicating expectations clearly, planning inclusively, and actively considering psychosocial hazards, employers can help ensure the Christmas party remains a safe and positive celebration, rather than the source of complex issues in the new year.

If you need any assistance with ensuring you have appropriate workplace policies or advice in relation to how to handle potential issues at your work Christmas party our employment lawyer Bianca Mazzarella, Principal can be contacted on 8600 6093 or bmazzarella@aitken.com.au.