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 one non-cash gift per year on a tax-free basis to a maximum of $500 for special occasions. Once every 5 years a second Non-cash gift 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.