Christmas parties canned as employers forced to turn into "Scrooge" this year

With the economic downturn now firmly upon us, research from the leading employment law firm in the UK suggests that the vast majority of employers are planning to ditch their Christmas party to save costs.

The research from Peninsula shows that 74% of employers believe that Christmas parties do not benefit their companies at all. In addition, two thirds had received a harassment complaint from an employee in the past following a festive celebration.

Peter Done, MD of Peninsula said;

“The economic downturn has forced a lot of companies to cull their Christmas celebrations. With the economic conditions the way they are, firms just can not warrant spending money on a Christmas party. These events represent a considerable cost to any firm, whether they employ 5 people or 50 and many employers consider this another process in tightening their belt and making their company more cost efficient. Firms who have been forced to make people redundant may also consider spending money on a Christmas party inappropriate as well as detrimental to the streamlining plan they are implementing in their business.

“Christmas parties always seem to be marred with incidents and employers are now realising that this is the case and are worried about what may happen on the night. If an employer puts any input, be it money or providing a venue, the party becomes an extension of the working day and the events can have a direct impact on the business. Problems arise when complaints start to be made and this is a regular occurrence following a Christmas party. If employers do plan on having a party, they should ensure they properly brief staff so that they are aware of the implications their actions will have.

“Christmas parties do have some big advantages. They are an effective way to encourage staff to bond as a team and often bring them closer together. They also have a noticeable impact on staff morale, something that employers need to keep on top of during this period of economic uncertainty.

“Employers need to think hard about their Christmas parties, weighing up the pro’s and con’s in relation to their business. Employees should bear in mind that Christmas parties are not a contractual right and should take into account the current state of the economy.”