When Christmas Parties Go Wrong
For many employers, the annual Christmas party is a long-standing tradition — a chance to bring people together, celebrate a year of hard work and boost morale. Yet, as workplace norms evolve and expectations shift, these events now come with a more complex set of considerations. Beyond selecting the venue and choosing the menu, organisations must carefully think through how to manage risk and protect both their people and their reputation.
According to Q Law, employment claims rise by as much as 30% in January, often because of incidents that occur at workplace social events. A CIPD 2022 survey similarly found that over a third of HR professionals had dealt with misconduct or inappropriate behaviour as a direct result of a work party.
So the question arises: is the annual festive gathering still a meaningful moment of culture — or a potential legal landmine?
Where Things Go Wrong: Behaviour, Boundaries and Alcohol
While most people attend workplace celebrations with the intention of having a good time, HR professionals know that these events regularly lead to conduct issues. Common challenges include:
Inappropriate comments or behaviour, often fuelled by alcohol
Physical altercations or aggression
Sexual harassment complaints
Overstepping professional boundaries, such as senior leaders making promises or comments they wouldn’t typically make in the office
Alcohol is often the biggest factor. Historically, free bars and shots at the end of the night were the norm. Today, attitudes toward drinking have shifted, with more people choosing sobriety or preferring low- or no-alcohol options. Organisations are quietly following suit, with many limiting the range of free drinks to reduce the risk of incidents.
The reality is clear: unlimited alcohol plus workplace relationships plus lowered inhibitions creates the perfect storm for ER issues come Monday morning.
The Grey Area: After-Parties and Employer Liability
Even when the official event runs smoothly, problems can occur after the party, especially when smaller groups continue the night elsewhere. Many employees assume that once the formal celebration ends, the employer’s responsibility ends with it.
But legally and culturally, that’s not true.
If a work group continues socialising immediately after a work-organised event, it can still be considered an extension of the workplace. This means behaviours — and potential incidents — may still fall under the employer’s remit. It’s a confusing area for many employees, but an important one for HR teams to manage.
Setting Expectations Without Being the “Fun Police”
One of the simplest and most effective ways to reduce risk is to send clear communication ahead of the event. This doesn’t need to be a stern warning. A well-worded message, FAQ-style, can cover:
Event timings and logistics
Behaviour expectations
Alcohol approach
A reminder of relevant policies (e.g., conduct, harassment, drugs & alcohol)
When done thoughtfully, it doesn’t dampen the mood — it protects employees. Many HR professionals have seen people lose their jobs over behaviours at work events. If a short, friendly message can prevent that, it's worth sending.
Leadership plays a crucial role here. When expectations come from the top, not just HR, they land far more effectively. Senior leaders also need to role-model appropriate behaviour — not overindulging, not making big promises under the influence, and not putting junior staff in uncomfortable situations.
Is It Time to Stop Calling It a “Christmas Party”?
Another consideration is inclusion. Not everyone celebrates Christmas, and some employees may feel uncomfortable attending an event that centres on a religious holiday they don’t observe.
Where the purpose of the event is to celebrate the team and the year — not the religious aspect of Christmas — many organisations now opt for more inclusive alternatives such as:
Winter Celebration
End-of-Year Event
Annual Social
A small language change can signal that everyone is genuinely welcome.
Rethinking the Format: Big Parties Aren’t for Everyone
Not all teams are suited to large, high-energy evening events - especially:
Parents managing childcare
Employees who don’t drink
People who feel anxious in big crowds
Remote or geographically dispersed teams
Alternative formats can be equally effective, and often better attended, such as:
Team-based lunches funded with a budget per person
Daytime celebrations, which are more accessible for parents
Smaller regional gatherings instead of one large central event
These options can foster stronger connection without the chaos or pressure of a big night out.
What If You’ve Had Redundancies or a Tough Financial Year?
Another sensitive consideration is optics. If a business has recently made redundancies or is operating on a tight budget, a lavish party can feel tone-deaf — or even damage trust.
Cancelling entirely may suggest the business isn’t performing well, but going ahead at full scale may send the wrong message. A scaled-back, proportionate event is usually the most balanced approach.
So… Should You Cancel the Christmas Party?
Probably not.
End-of-year celebrations can be hugely positive for morale, culture, and connection. They remind people that their work is valued and offer an important moment to reflect and come together.
But they do require thoughtful planning.
Key takeaways for organisations:
Set clear expectations — in a friendly, inclusive way
Consider limiting or removing spirits from free bars
Be mindful of inclusion: language, alcohol choices, timing, and accessibility
Ensure leadership role-models the behaviour expected
Prepare for the risk — but don’t let it overshadow the celebration
Choose a format that works for your team, not a one-size-fits-all tradition
A well-run, well-considered event can create brilliant memories and strengthen culture — without creating January headaches.
It’s not about cancelling the Christmas party; it’s about managing the risks while keeping the joy.
For more on this topic, check out our episode ‘Should We Cancel The Christmas Party’ on The HR Podcast. Available on Spotify and Apple Podcasts.