A company holiday party is intended to be a joyous occasion. A chance to get together with coworkers and celebrate the season. An opportunity to reward employees for a year's job well done, and to thank customers for their support. But a poorly planned party can turn into a company's worst nightmare. Too much drinking, inappropriate behavior and questionable entertainment can lead to employee injuries or fatalities, harassment charges, workers compensation claims and other legal liabilities for a company - much more than the employer signed on for.

This is not to suggest that employers do away with holiday festivities altogether. According to a recent Holiday Practices Survey conducted by the Society for Human Resources Management, eighty-three percent (83%) of companies hold some type of holiday party for their employees, so despite the risks, most employers still see the function as a benefit. Now is the time, while you are planning your function, to take the steps necessary to minimize the potential risks and pitfalls and focus on conducting an enjoyable celebration.

Hold the party off company premises, and outside of normal business hours. If alcohol is to be served, hire bartenders or caterers - do not have company employees mixing the drinks. Notify employees that attendance is optional. Avoid negative actions or comments when an employee does not attend. Prior to the party, circulate a memo to all employees emphasizing the importance of moderation in drinking, and reminding them that the company's policies regarding sexual harassment and discrimination apply to company parties.

Monitor drinking

Drinking is most often at the root of holiday party woes. As an employer, you may be held legally responsible if an intoxicated employee gets into a car accident on the way home from your event. Since inhibitions tend to go down as an individual's alcohol level rises, excessive drinking may leave the unwary employer open to charges of sexual or other harassment as well.

The safest option is not to serve alcohol at your function, but if you choose to do so, do not make an open bar the centerpiece of the party. Have plenty of non-alcoholic beverages on hand, and provide entertainment or some other activity for attendees besides drinking. You might consider providing vouchers to limit the number of drinks served, or limit the period during the party at which alcohol is served. Instruct bartenders not to serve minors and to stop serving individuals who seem intoxicated, and designate employees to circulate during the party to spot those who do not look sober.

Provide transportation home by means of designated drivers or company-paid taxis for those who request it, or who are deemed unable to drive safely. If you are holding the party at a hotel, negotiate reduced rate hotel rooms for employees.

Set a proper tone

To increase the likelihood that the occasion will be festive, but professional, don't limit the party to employees, but encourage employees to bring spouses, significant others and children if appropriate. Misbehavior is much less likely to occur in a family environment.

When choosing entertainment or activities, choose something that will engage employees, yet be appropriate to the occasion. One well-intentioned company I worked with hired a comedian without fully checking him out. His off color jokes offended several employees, and could have led to serious complaints.

If an employee complains about harassment or any other improper conduct at the party, take the complaint seriously and investigate it just as you would complaints about regular activities during business hours. Don't write off an allegation just because the behavior complained of occurred at a party.