Christmas Party Unfair Dismissal. Why This Case Still Matters 10 Years On!

By HR Experts’ Michael Alkan

It’s been 10 years since a major Fair Work Commission decision (Keenan v Leighton Boral Amey NSW Pty Ltd [2015] FWC 3156) sent a strong message to employers: if you’re going to discipline someone for their behaviour at a work function, you must manage it fairly and consistently and take responsibility for how the event is run.

The case involved a worker dismissed after drinking too much and acting inappropriately at a company Christmas party. He admitted to drinking heavily, using coarse language, and kissing a co-worker without invitation. But despite that, the Commission found his dismissal was unfair.

So why did he win?

Key Lessons from the Case

Even though some of the behaviour was inappropriate, the dismissal was found to be unfair for a few key reasons:

The company failed to supervise the event properly

Alcohol was freely available, including from an esky where staff could help themselves. No one stopped the employee from continuing to drink, even after he became clearly intoxicated.

Some of the worst behaviour happened after the official party ended

The most serious allegation, kissing a colleague, happened in a public bar after the function had officially finished. The Commission said the company didn’t clearly show that it still had control of the event at that point.

The investigation process was flawed

The company had already started gathering witness accounts before giving the employee a fair opportunity to respond, and when it did, the allegations were not clearly put to him.

Others were treated more leniently

A senior manager made an extremely inappropriate comment to a junior female employee and he wasn’t dismissed. That inconsistency hurt the employer’s case.

What Should Employers Do?

If you’re planning a social event, keep this checklist in mind:

Set clear expectations – Let staff know that your workplace policies still apply at work events.

Manage alcohol responsibly – Appoint someone to supervise the event, and make sure no one is self-serving drinks.

Have a start and finish time – Make it clear when the “official” function ends. Anything after that is harder to control and harder to rely on for disciplinary action.

Be fair and consistent – If you’re going to discipline someone, treat similar cases the same way. Favouritism or double standards can undo your decision.

Investigate properly – Don’t jump to conclusions. Give the employee the full details and a chance to respond before taking any action.

What Employees Should Know

Just because it’s a party doesn’t mean the rules go out the window. If it’s a company event, your actions can still be considered workplace behaviour. But you also have the right to a fair process if something goes wrong.

Still Relevant Today

Even after a decade, this decision is regularly referred to. It’s a clear reminder: employers must take responsibility for how functions are organised and ensure any disciplinary action is handled fairly and lawfully.