Having an intra-office birthday party for an employee is a great low-cost but personalized way to honor an employee. However, if handled incorrectly it can lead to hurt feelings and claims of discrimination.
First and foremost, always ask permission from employees during the new hire process. Some people view releasing their birthday information as an invasion of privacy. Others might believe that celebrations of any kind could be at odds with their religious beliefs.
Recognitions should be funded by the employer, though in a lot of companies today department leaders ask their employees to chip in with costs sometimes. This situation can create an uncomfortable situation and lead to ill will between co-workers. Ask preference beforehand to remain on the safe side.
The most important rule to always remember is never reveal the age and/or year of the employee's date of birth. Some companies have monthly birthday celebrations and honor all employees born in that specific month. This helps to reduce the risk of talking about birthday years and/or age.
Finally, to avoid any discrimination claims, what you do for one employee must be offered for another employee as well. This will reduce the bias of preferential treatment.
Company birthday celebrations can serve as a great and easy morale booster, just do not go blowing out the candles of the party!
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