Events for all staff are 100% deductible "in respect of one of six or fewer special events held in a calendar year at which the food, beverages or entertainment is generally available to all individuals employed by the person at a particular place of business and consumed or enjoyed by those individuals". This includes the annual Christmas party which is open to all employees.
Employers can give their employees two non-cash gifts per year on a tax-free basis to a maximum of $500 for special occasions. Non-cash gifts now include non-cash awards given to honour employees' length of service or to recognize other achievements. Gifts certificates are not allowed. If employees go shopping, pick what they want and you reimburse them - this also would not be allowed; however, if the employer buys the employees something they don't want that would be allowed.