Just over half of employers in the voluntary sector (51%) are planning a Christmas party but in the public sector less than a quarter (24%) are likely to have a Christmas event a drop of 12% from 2007.

Overall, the majority of organisations (60%) intend to provide staff with a Christmas party this year, despite the economic downturn.

According to research from the CIPD, 77% of employers will provide a Christmas lunch - compared with 84% last year.

Manufacturing and production companies are the most reluctant to offer this perk - 67% compared with 77% in 2007.

Charles Cotton, reward adviser at the CIPD, said: "Employers need to think about why they are providing a Christmas party in the first place.

"As reward becomes ever more individual, the Christmas party is one way of reminding staff they are part of a common endeavour."