As the year winds down, many workplaces look for ways to celebrate a job well done. For most, that means an end-of-year function or Christmas party. These events are a great chance to relax, laugh, and connect with colleagues outside the usual routine – but they can also lead to moments that spark regret, embarrassment, or even disciplinary action.

Every year, tales emerge of someone having one drink too many and creating an awkward Monday-morning moment for themselves (and everyone else). In more serious cases, inappropriate behaviour can lead to formal warnings, personal grievances, or even dismissal. Here’s a helpful refresher on what employers and employees need to keep in mind so the only thing lingering after the party is good memories.

The employer–employee relationship still applies 

Even if the celebration isn’t held at the office, the employer–employee relationship doesn’t magically clock out. If the event is organised, promoted, or funded (even partly) by the employer, it’s considered an extension of the workplace. Case law makes this clear:

• Simmonds v South Wairarapa Auto Services Ltd[1] – A tense dispute at a Christmas party led to an unjustified dismissal due to inequitable treatment. 
• C v D Ltd[2] – Sexual harassment at a Christmas function resulted in compensation and a requirement for the employer to implement a sexual harassment policy. 
• Smith v The Christchurch Press Co Ltd[3] – Harassment at social events connected to work, including Christmas functions, can be considered to have occurred “in the course of employment”.

Employer obligations 

Under the Health and Safety at Work Act 2015, employers must provide a healthy and safe environment. This obligation can extend to work functions. Employers should take reasonable steps to minimise risks, such as:

• setting clear expectations for behaviour; 
• limiting alcohol consumption and/or providing non-alcoholic options; 
• ensuring safe transport options for anyone who has been drinking; and 
• proactively monitoring the event.

Remember: more alcohol usually means more risk – of harm, poor judgement, or behaviour that crosses the line. For example, in Chee v Laytons Linen Hire[4], management investigated after a low-key Christmas celebration at work involved staff drinking. Even minor events can trigger employment processes if behaviour crosses policy lines.

Employee responsibilities 

For employees, it’s worth remembering that a work function hosted by your employer is still considered “work.” Conduct that would be unacceptable in the office is equally unacceptable at the party. In Rerekura v A W Fraser Ltd[5], a labourer who skipped a shift after drinking at a Christmas function was justifiably dismissed due to dishonesty and operational impact. 

A helpful rule of thumb: if you wouldn’t do it at work, don’t do it at the work-do.

Avoiding common pitfalls 

Set behavioural expectations 

Work functions are extensions of the workplace. Policies on harassment, bullying, substance use, and misconduct still apply. Communicate expectations clearly before the event.

Limit alcohol consumption 

Alcohol often fuels inappropriate behaviour. Offer non-alcoholic options, ensure food is available, consider early cut-offs, and encourage senior staff to model responsible behaviour.

Plan for safe transportation 

Employers may bear some responsibility if an employee is harmed on their way home from a work function. Taxi chits, ride-share credits, carpooling plans, or shuttle services all help.

Monitor and address issues promptly 

Assign senior team members to discreetly oversee the event. If issues arise, intervene early and document what occurred. This demonstrates a commitment to safety and fairness and supports any later process.

Finding the right balance 

Work Christmas parties should be a celebration, not a source of regret. They offer an opportunity to strengthen relationships and recognise hard work – but only if handled with care. By learning from past cases and implementing thoughtful planning, employers can minimise risk and support safe, enjoyable events.

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. 

Our view? It’s better to celebrate wisely than to face regrets in the new year.

If you’d like support with your Drug and Alcohol policy or Health and Safety policy – or if we can help in any way – our team is here to help. Email admin@cmalaw.co.nz.

[1] Simmonds v South Wairarapa Auto Services Ltd ERA Wellington WA49/01, 2 August 2001

[2] C v D Ltd (22 September 2008) CA 140/08

[3] Smith v The Christchurch Press Co Ltd EMC Christchurch CC36/99, 11 November 1999

[4] Chee v Laytons Linen Hire t/a Taylors Healthcare EMC Auckland AC62/02, 1 December 2003

[5] Rerekura v A W Fraser Limited [2011] NZERA Christchurch 20