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Sainsbury's has asked workers to postpone their Christmas parties until the new year following the emergence of the Omicron Covid variant.
The supermarket said the situation was "very delicate", adding "we need to do everything we can to make Christmas safe" for staff and customers.
Sainsbury's boss Simon Roberts said the firm "will make sure no-one is out of pocket as a result of this decision".
It follows uncertainty over the new Omicron strain of Covid which has stoked safety concerns over large parties this Christmas.
There are concerns that the emergence of the new variant could lead to higher staff absences over Sainsbury's busy festive period.
"The industry issues on labour and recruitment are well known and are ongoing and we are doing everything we can to avoid increased absence," said Sainsbury's, which also owns Argos and Habitat.
The company said it took the decision after discussions with its store employee representative group.