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It is certainly going to depend on where you work, but I'd think a good rule of thumb for the work Christmas party may be:
If you work on the plant floor, chances are you need to dress up more than you do at work.
If you work in the office and wear business casual, you are likely OK
If you wear a suit and tie all day, you can dress down a bit from normal
We don't have parties at work so I don't worry about this shit.
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