Lessons from the Past: Four Cautionary Tales
1. Misconduct and Unjustified Dismissals
In Simmonds v South Wairarapa Auto Services Ltd (2001), an office worker attended a company Christmas party where her partner was assaulted by a colleague over a personal dispute. This incident created a tense atmosphere at work, leading to the employee being stood down and later dismissed. The Employment Relations Authority (ERA) found the dismissal unjustified, as the employer had failed to treat staff equitably.
Takeaway: A workplace function is an extension of the office. Employers must manage incidents fairly and avoid knee-jerk reactions that could lead to claims of unjust treatment.
2. Substance Use and Procedural Fairness
In Kemp and Ors v Westpac Banking Corporation (2005), a manager was dismissed after a group of employees smoked marijuana at a Christmas function. Although the manager did not partake, their failure to intervene was held to be unacceptable. The investigation into the incident, however, was flawed, and the dismissal was overturned due to procedural unfairness.
Takeaway: Employers must conduct thorough investigations before taking disciplinary action. Clear communication about behavioural expectations can help prevent incidents.
3. Harassment and a Toxic Culture
A case from 2008 (C v D Ltd) revealed severe workplace misconduct. A builder experienced inappropriate physical contact and sexual remarks at a Christmas function. When he complained, his employer dismissed his concerns as part of the industry culture and even excluded him from a company event for raising the issue. The ERA awarded compensation and mandated the development of a sexual harassment policy.
Takeaway: Inappropriate behaviour, whether excused as "banter" or cultural norms, can result in significant legal and reputational damage. Employers must set clear boundaries and act decisively to address misconduct.
4. Irresponsible Behaviour and Trust Erosion
In Rerekura v A W Fraser Ltd (2011), a labourer skipped a night shift after attending a private Christmas function. Initially dishonest about his absence, he later admitted he had been drinking. The employer dismissed him, and the ERA upheld the decision, citing the impact of his absence on operations and the breach of trust.
Takeaway: Employee behaviour outside work hours can have professional consequences, particularly when it impacts operations or undermines trust. Transparency and accountability are crucial.
Avoiding Common Pitfalls
Set Behavioural Expectations
Employers should treat work functions as extensions of the workplace. This means ensuring employees understand that normal workplace policies—such as those on harassment, substance use, and misconduct—apply. Clearly communicate these expectations before the event.
Limit Alcohol Consumption
Alcohol often fuels inappropriate behaviour. Offering non-alcoholic options, ensuring food is available, and setting an early cut-off for alcohol service can reduce risks. Having senior staff model responsible drinking sets the tone for the event.
Plan for Safe Transportation
Employers may bear responsibility if an employee is injured on their way home from a work function. Arrange transport options, such as taxis or ride-sharing credits, to ensure everyone gets home safely.
Monitor and Address Issues Promptly
Designate senior team members to discreetly oversee the event. If inappropriate behaviour arises, address it promptly and document any incidents. This demonstrates a commitment to maintaining a safe and respectful environment.
Finding the Right Balance
Work Christmas parties should be a celebration, not a source of regret. They offer an opportunity to strengthen workplace relationships and recognise hard work, but only if handled with care. Employers must balance the festive atmosphere with their duty of care, keeping in mind the potential legal and reputational consequences of poor planning.
By learning from past mistakes and implementing thoughtful policies, you can create a festive, inclusive, and safe event—ensuring everyone can celebrate the season without jeopardising their professional relationships or wellbeing.
Final Thought
Christmas parties are meant to reward and unite teams, but they are still workplace events at their core. Striking the right balance between fun and responsibility ensures everyone enjoys the festivities without unwelcome consequences. As one legal expert aptly puts it: “It’s better to celebrate wisely than to face regrets in the new year.”