The festive season often brings workplace celebrations that blur the lines between professional and social settings. While these events are meant to foster team spirit, they can also lead to situations where employee behaviour raises serious concerns. Employers frequently ask: Can misconduct at an off-site, out-of-hours event justify dismissal?
 

Scenario 

Your company is hosting a staff Christmas party on a Saturday at an external venue. You plan to issue a directive outlining unacceptable behaviour and warning that serious misconduct may result in termination. Some employees question whether the employer can enforce such consequences when the event occurs outside normal work hours and off company premises. 


Q. In this circumstance, can the employer enforce the directive that dismissal may result if an employee seriously misconducts themselves at the party?  

A. Industrial tribunals have generally determined that conduct that gives rise to a material risk (or potential risk) of damage to an employer’s interests may nevertheless be conduct that attracts the legitimate concern of the employer and, depending on the circumstances, conduct that justifies the employee’s dismissal.  

This determination means there must be a clear and relevant connection between the employee’s out-of-hours conduct and the employee’s employment.
 

Examples where the dismissal was upheld

Circumstances in which the employer has successfully argued before the Fair Work Commission (or its predecessor) that the employee’s dismissal was fair include: 

  • the dismissal of an employee because of offensive behaviour in a hotel room after a combined Christmas party and farewell party  

  • the dismissal of an employee who punched a fellow employee in the face at a private New Year’s Eve party attended by other employees 

  • the dismissal of a male employee who used offensive, abusive and threatening language towards a female colleague at a motel being used by staff in connection with a company training course 

  • the dismissal of an employee of a brewing company after being convicted of high-range drink-driving, while driving out-of-work hours in a privately-owned vehicle. 

 

Company policy matters 

Issuing a directive before the event is essential. It should:

  • Define unacceptable behaviour (e.g., harassment, violence, excessive intoxication).

  • State potential consequences, including dismissal for serious misconduct.

  • Remind employees that the Code of Conduct applies to work-related events, even outside normal hours.

Beyond the directive, employers should maintain a broader policy on out-of-hours conduct and regularly communicate expectations.
 

Bottom line 

Even if there is a valid reason for dismissal, the Fair Work Commission will assess whether the termination was harsh, unjust, or unreasonable. Employers must ensure procedural fairness, including a proper investigation and an opportunity for the employee to respond before making a decision.
 

Need help navigating this festive season?

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