End-of-year celebrations should lift team morale, not create brand-damaging headlines or trigger investigations. Yet a recent workplace incident involving Ubank has become a stark reminder of how fast things can go wrong—especially when senior leaders forget that a Christmas party is still work.
A senior executive at the digital bank lost their job after a staged “hostage” scene—featuring cultural stereotyping and inappropriate role-play—was photographed and circulated among staff. Within days, the bank launched a formal investigation and terminated the executive’s employment. No second chances, no excuses.
For small to medium-sized businesses, the takeaway is simple: your Christmas party can put your culture—and your legal compliance—to the test.
Let’s break down what you must keep front-of-mind before the festivities kick off.
1. A Work Function or a Christmas party Is Still Work
If your company organises it, pays for it, or puts its name on the invite, the Fair Work Act 2009 and your own HR policies follow you right into the bar.
That includes:
- Codes of conduct
- Anti-discrimination and harassment obligations
- WHS duties
Once alcohol flows, the line between “just a joke” and “conduct breach” disappears fast. Ask yourself: Are my managers fully aware of their responsibilities before they walk in?
2. Cultural Stereotyping Is a Fast Track to Formal Action
The Ubank example centred around a mock “terrorist” scenario—costumes, gestures, the lot. Even if participants think it’s harmless fun, others may find it humiliating, threatening, or exclusionary.
Under the Racial Discrimination Act 1975, employers must take reasonable steps to prevent behaviour that could offend or disadvantage employees based on race, ethnicity or religion.
One photo is all it takes for reputational damage to spread internally—and externally.
3. Senior Leaders Don’t Get a Free Pass
Executives set the tone. When they misstep, the fallout is amplified. Ubank’s CEO was clear: leaders must model appropriate behaviour—no exceptions.
If your management team is attending your Christmas event, ask:
Do they understand the power imbalance at play?
Do they know they’re accountable for keeping the environment safe and respectful?
4. Your Policies Don’t Take the Night Off
Before your event, make sure your team is clear on:
- Expectations around behaviour
- Alcohol consumption guidelines
- Respect for colleagues
- Social media and photo-sharing boundaries
Under the Work Health and Safety Act 2011, businesses must eliminate or minimise risks to staff—even at off-site events. That means pre-briefing leaders and setting non-negotiables.
5. Make Speaking Up Easy
If something feels off, people should know how to report it—without fear.
Clear reporting channels protect your people and your business.
And don’t underestimate the importance of empowering junior staff. They’re often the ones most affected by poor behaviour but least likely to speak up when senior employees are involved.
The Bottom Line for SME Owners
Your Christmas party should be fun. It should build cohesion. But it must also reflect your culture, your values, and your legal obligations.
One misjudged “joke” can turn into:
- A formal investigation
- Dismissals
- Reputational harm
- Legal exposure
So before the decorations go up, pause and ask:
Have I equipped my leaders and my team to celebrate safely, respectfully, and professionally?
If you’re unsure, let’s talk. A short policy review today can save a major headache tomorrow. Contact us for a discover call or take our HR Health Questionnaire .
