A work Christmas party is a work event, so your legal duties as an employer still apply. You need to keep your team physically and psychologically safe, take proactive steps to prevent sexual harassment, serve alcohol responsibly, set clear behaviour expectations and an end time, and make sure everyone gets home safely. That applies whether the party is in the office, at a restaurant or somewhere else entirely.
As we gear up to close out the year, let's talk about the end-of-year Christmas party. I know I might have some unpopular opinions about these celebrations, but hear me out.
It's still a work event
Whether you're celebrating at the office, your premises or a fancy restaurant, it's still a work event. Just because the clock's punched off doesn't mean your responsibilities vanish. You're still the captain of the ship, and that comes with legal duties to keep your team safe.
Those duties come from several places:
Work health and safety laws require you to manage risks to your team's health and safety, including psychosocial risks like harassment, aggression and bullying. Every state and territory now has specific rules on psychosocial hazards, with Victoria's regulations starting on 1 December 2025.
The positive duty under the Sex Discrimination Act requires employers to take reasonable and proportionate steps to eliminate sexual harassment and related unlawful conduct, as far as possible. It's not enough to respond to a complaint after the fact. The Australian Human Rights Commission can investigate and enforce compliance.
Your own policies and employment contracts set the behaviour standards that apply, and the party is part of work.
And yes, I get it. It's starting to sound like quite the planning mission, but it's always been complicated. We just didn't realise it because, it's a party, right? Wrong. It's a work function, and that brings responsibilities.
Before the party: set expectations
A little preparation goes a long way.
Remind your team, in writing, that it's a work function with the same behaviour standards as the office. Point them to your code of conduct and your bullying, harassment and discrimination policies.
Make sure people know how to raise a concern, and who to go to on the night.
Set a clear start and end time, just like those organised kids' birthday parties. Boundaries are key. Make it clear that any "after party" isn't an official work event.
Make attendance genuinely optional, and plan an event that works for everyone, including people who don't drink.
Alcohol
If you're hosting on your premises, pay attention to the alcohol-to-food ratio, and have plenty of non-alcoholic options. My biggest tip? Hire someone with responsible service of alcohol qualifications to pour the drinks. I can hear the groans, but trust me, it's worth it. Eskies and impromptu bartending at work functions? Big red flags. Don't do it.
If you're at a licensed venue, the venue has its own responsible service obligations, but that doesn't take away yours. Consider a set bar tab rather than an open one, and ask managers to keep an eye out and step in early.
Choosing a venue
If you take the party off site, do some due diligence before you dance your way to the venue. Is it exclusive? Who else will be there? Are there any potential landmines waiting to explode? The courts have dealt with matters involving these sorts of issues, including where work parties have clashed with family gatherings at shared venues. You can see where this is going, and how it can get messy.
Think about accessibility too, and about any activities that carry their own risks.
Secret Santa
Personally, I'm not a fan of Secret Santa, but I appreciate it can be an easy solution. But, you really do need to set some ground rules: a spending limit, and G-rated, neutral, family-friendly gifts only. A "joke" gift that's offensive or sexual can amount to harassment.
Getting everyone home safely
As the event winds down, make sure your team gets home safely. Arrange rides, taxis or rideshare vouchers, and make sure nobody drives after drinking.
After the party
If something goes wrong, deal with it promptly and fairly. Take any complaint seriously, follow your policies and processes, and get advice before taking disciplinary action. Conduct at a work function can be grounds for discipline, but how you handle it matters just as much as what happened.
Do you really need the party?
I don't think this is said enough, so I'm going to say it. Pause for a moment and ask yourself: do we really need this end-of-year extravaganza? Do your team members genuinely want to spend more time together? It's a valid question.
If the answer is a resounding yes, then so be it. Otherwise, why not consider other ways to show your gratitude, such as a group activity during work hours, gift vouchers or a thoughtful gift? Keep the holiday cheer alive without the legal hangover.
I might sound like a Christmas Grinch (I'm really not, though. I love Christmas!), but my intention is to help you sail smoothly into the new year without legal headaches. Like all things that I share, this one is anchored in prevention being better than cure. Share this with your fellow business owners, because we all deserve a stress-free end to the year and to start the next one with a clean slate. Cheers to responsible celebrations with your amazing team, however that looks for you.
This topic is also discussed in episode #143 of the Rise Up in Business podcast, 'Tis the season not to be sued: end of year festivities.
Want to make sure your employment contracts and workplace policies are up to date before the new year? Download the free Essential Legal Checklist, then book an introduction call.
This article provides general information only and does not constitute legal advice. Your obligations depend on your specific circumstances.
Frequently asked questions
Is a work Christmas party considered part of work?
Yes. A work Christmas party organised or paid for by the business is generally treated as a work event, so your work health and safety, anti-discrimination and sexual harassment obligations apply, wherever it's held.
Can an employer be liable for what happens at a work Christmas party?
Yes. Employers can be held responsible for harassment, injuries and other incidents at work functions, unless they've taken reasonable steps to prevent them. Clear expectations, responsible service of alcohol and safe transport home all help.
What should employers do before the work Christmas party?
Remind your team in writing that it's a work event, point them to your policies, set a clear end time, plan responsible service of alcohol and non-alcoholic options, and arrange safe transport home.
Does the positive duty to prevent sexual harassment apply to work events?
Yes. Under the Sex Discrimination Act, employers must take reasonable and proportionate steps to eliminate sexual harassment in connection with work, which includes work social events.
