Bubbles, boundaries, and HR headaches: Preparing for end-of-year work parties

While everyone likes to have a good time, no one wants to end up in the Fair Work Commission in early January, one law firm partner has warned.

Alcohol is often a prominent feature of a workplace’s Christmas festivities, which, unfortunately, can result in end-of-year parties taking an unfortunate turn.

Speaking to HR Leader, Paul O’Halloran, a partner at global law firm Dentons, reflected that after a “rollercoaster” year in business, it comes as no surprise that many workers will be keen to unwind, reflect, and enjoy themselves at their upcoming end-of-year celebrations. At their core, he said, these events offer a great opportunity to recognise and celebrate the accomplishments of 2025.

“End-of-year events often include the service of alcohol, fostering a lively environment where employees can unwind and socialise. However, these same factors can also create significant legal risks for employers,” O’Halloran said.

“Even though such functions typically occur outside the usual workplace, they are generally still regarded as ‘work’ because of their clear connection to the employment context.”

“Believe it or not, there are real-life cases at work parties of employees setting coworkers on fire, pushing them into pools, or knocking them into boat propellers, and so the cases demonstrate how quickly a fun gathering can turn into a serious risk for both employees and employers.”

He pointed to two unfair dismissal cases stemming from behaviour at end-of-year functions, illustrating the risks associated with serving alcohol, especially when it is freely available.

“In Brown v Aristocrat Technologies Australia Pty Ltd [2005] AIRC 656, a drunk employee urinated over the side of a restaurant balcony onto diners at a table below at his employer’s Christmas party. Unsurprisingly, the employee was dismissed,” O’Halloran said.

“But, what is more surprising is that the employee brought an unfair dismissal claim, which, as you might hope, was unsuccessful. Importantly, the employer protected itself by communicating with employees and union delegates about its expectations as to responsible drinking and behaviour at the party, and repeatedly reminding them that workplace policies would apply at the event.”

O’Halloran went on: “In Vai v ALDI Stores [2018] FWC 4118, an employee was dismissed after he threw a glass full of beer at a security guard at a Christmas event, with the glass flying over the heads of his coworkers and into a wall where it shattered.”

“The employee unsuccessfully argued his employer had to take some responsibility for his misconduct because it had freely supplied alcohol at the event. Helpfully for the employer, one of its managers suggested that he stop drinking before the incident occurred.”

O’Halloran stressed that employers need to take a proactive approach when planning end-of-year functions: preventing misconduct requires “careful preparation”, he said, including measures to identify and eliminate potential health and safety risks.

“Employers need to be proactive at this time of year, taking reasonable steps to prevent misconduct or risks to health and safety – as is demonstrated by the cases,” he said.

“The importance of acting proactively has become even more pronounced due to the positive duties placed on employers to prevent sexual harassment, sex discrimination, and hostile workplace environments.”

O’Halloran offered instructions to employers: “If you are holding an end-of-year function, ask yourself: Do you have workplace policies dealing with appropriate and unacceptable workplace behaviour, and are employees educated in relation to such policies? Will there be communications in relation to expectations around staff behaviour at the event, including in relation to alcohol consumption? Is there a nominated person who will be responsible for ensuring the above is observed during the function? Will you be serving alcohol responsibly, including by offering food and non-alcoholic drinks to employees? Do you have a plan to assist employees in getting home safely after the event, particularly where they have been drinking?”

While everyone likes to have a good time, he concluded, no one wants to end up in the Fair Work Commission on 2 January.