An order to cancel Christmas at Tasmania's public service has been reversed by the State Government after a public outcry.

Service Tasmania staff were told this week not to recognise Christmas in their offices in any way, and were forced to remove decorations and told not to wear anything festive.

It is unclear why the order was made but the tinsel is going back up after a subsequent memo giving the all-clear to decorate offices.

Outraged listeners called ABC Radio Hobart to vent their fury over the original decision.

One woman went as far as to suggest the person behind the decision to remove the decorations should lose their job.

"I find it outrageous, I just cannot believe it," she said.

Another woman in northern Tasmania said she attended Launceston Service Tasmania earlier in the week and the office was decorated, but when she returned on Thursday the decorations were gone.

Another caller said "the politically correct brigade was at it again".

"It is Australian culture that we have Christmas trees, Christmas carols, and that we celebrate Christmas with all religions across the board," he said.

CPSU Tasmania secretary Tom Lynch said he suspected it was a managerial decision.

"People have had a really tough year and this is one little opportunity to let your hair down a bit and celebrate the season with the customers in the store," he said.

"Some sensible tinsel and a few Santa hats is welcome. For the Christmas Grinch to come in and stamp on that is completely over the top."

The State Government has directed that the Christmas decorations be put back. ( ABC News )

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The State Government responded by overturning the ban on decorations in Service Tasmania offices.

Premier Will Hodgman said he had acted to ensure no-one thought Tasmania was not embracing Christmas.

"It will be Christmas as usual," Mr Hodgman said.

"I'm not aware of where the directive came from but as soon as I became aware of it, I was happy to see it overturned.

"I think it's a nice thing to celebrate and there's no reason why people can't do that, when they're at work at Service Tasmania or visiting as customers," he said.

"We're not banning Christmas decorations, nor are we compelling anyone to decorate their premises, but if people want to, I'd like to think they can do so."