Sexual harassment
If the work Christmas party is organised and paid for by the employer, the obligations generally remain the same as though it was in the workplace.
So employers are advised to clearly outline what is inappropriate behaviour and what the repercussions can be if misconduct takes place.
The definition of the "workplace" - and therefore what constitutes workplace sexual harassment - has become broad due to the increase in digital technology, such as email and social media.
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Over consumption of alcohol
The celebration atmosphere also means there is a high chance of alcohol in the mix, which brings with it additional challenges for employers.
For health and safety purposes and in an attempt to reduce the chances of inappropriate conduct, employers should ensure the service of alcohol is responsible and employees have plenty access to water and food.
They should also consider an early cut-off time for the service of alcohol.
Getting home safe
The potential consequences for employers found to be negligent should not be underestimated.
If an employee is injured on their way home from the function, the employer could be faced with a worker's compensation claim.
The seriousness of these issues should be enough to encourage employers to take proactive steps to educate and supervise their team. Preparing transport home is a highly effective way to minimise the risk.
If someone gets too intoxicated, send them home safely straight away - and don't let them get behind the wheel of a car.
Ruined reputations
Professional and business reputations are at risk.
Imagine the difficulty a boss would have managing their team if they drunkenly share inappropriate information about their love life.
Other examples might include bumping and grinding on the dancefloor or a solo attempt on the karaoke microphone.
So, don't kill the fun - but remember it is an enjoyable celebration, and workers and bosses who do not adhere to the policy or code of conduct, spoil the party for everyone.
No matter how much fun you're having, you're still officially at work.