What you need to know to stay on top of employment law at your Christmas party

Dec 5, 2025

It’s Christmas party time, and we’re getting serious.

Employment laws are tightening, increasing your legal duty to protect your people (especially from sexual harassment). That means you must be even more mindful of the ways you’re looking after your employees, and the risks you’re assuming when hosting a Christmas party. It takes a good understanding of HR legislation, and careful planning. But if you put the right policies in place, outline your expectations clearly, and make sure your employees are aware of their responsibilities, you’ll be able to celebrate without placing too much risk on your reputation.

This month, we’re helping you protect your people and develop your teams by sharing:

● The problem with parties when they’re poorly managed, and the risks to be aware of

● Proposed changes to employment law around sexual harassment, and what you need to know

What’s the problem with Christmas parties?

The biggest issue with parties organised by your workplace is the combination of alcohol and a lively social setting. This can lead to unwanted and inappropriate behaviour, which often amounts to gross misconduct.

The problems are usually caused by:

Alcohol abuse

Employees who are drunk or under the influence might behave inappropriately.

Violence

Arguments, or even fights, can break out between employees, or between employees and third parties.

Property damage

There’s a higher risk of damage, either to your workplace or the venue you’ve hired, when people drink too much and become raucous.

Sexual harassment

This is a big one, as it covers everything from online messages and inappropriate remarks to touching and verbal harassment, with (potentially huge) negative consequences for your organisation.

It’s also important to note third-party sexual harassment is one of the extensions included in the employment law changes. That means you’re responsible for the behaviour of non-employees in
attendance, as well as your employees’ behaviour towards them.

How can you host a Christmas party and avoid misconduct?

It’s crucial you outline expectations, set rules, and make it clear there’ll be consequences for inappropriate behaviour (while outlining what those behaviours are).

We recommend, at a minimum, you:

Put clear policies in place. State your employee expectations in writing, and make sure everyone has a copy of the document.

Stress your zero-tolerance approach. Keep reminding employees there are consequences for all instances of poor behaviour, and make it known that you determine what unwanted behaviour includes.

Remind employees of their responsibilities. You might be hosting a party, but it’s still a business event. Your employees must represent your organisation appropriately, on and off the premises.

Reiterate company rules. Reinforce the message that company policies apply, no matter where the party is held. Remind employees that negative behaviour could trigger investigations or disciplinary actions.

Make it clear there’s no pressure to attend. Employees often feel forced to attend the Christmas party. Continue to tell your team that, while everyone’s welcome, they don’t have to come, nor do they have to give a reason why.

We have seen a decline in employment tribunals following company Christmas parties (down by 54% from 2022). This could be because there are fewer Christmas parties taking place and there’s less alcohol consumed at those that do. That said, it’s important to mention that, despite the decline, 32% of the tribunal cases related to sexual discrimination, and 43% of these were upheld. While we can support you through gross misconduct management, including hearings and tribunals, it’s in your best interests to avoid the process altogether! But if you find yourself in a challenging position, or want to make sure you’re avoiding one with clear policies and robust HR processes, contact lucy@mcmillanandassociateshr.com.