Employees should not have to pay their employer for being invited somewhere and certainly not for being invited to celebrate in their own offices. Christmas celebration can be arranged cheaply and nobody would mind. However, it could matter if you held two separate parties - an expensive one for managers and aa cheap one for the others. If your company is currently undergoing a period of salary cuts and layoffs, do not give any expensive Christmas party. You would only make the employee morale worse.
Do not force employees to exchange gifts
Not everyone can or is willing to invest his own money in gifts for colleagues. Your people should, therefore, not be forced to exchange gifts or even buy gifts for their superiors. As far as the gifts you as the employer want to give your employees, try to ask your people what they want first. The abstainer whom you give a bottle of alcohol would certainly appreciate e.g. an extra day off more.
Do not force charity
Charity is a commendable activity. Just the fact that it is the time of Christmas does, however, not mean that you should be forcing your employees to donate to a charitable purpose you have chosen.
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Article source U.S. News & World Report - news and information focused on education, health, money, travel and opinion