Three Yarra Trams employees have been stood down pending an investigation, following complaints about a strip show hosted at the Brunswick tram depot Christmas party.

The Andrews Government has weighed into allegations about the lewd performance at the party, which was run by the depot's employee-run social club.

"While this is a matter for Yarra Trams, it's an incredibly disappointing incident that clearly doesn't meet community expectations," a government spokeswoman said.

It is understood that Yarra Trams received two complaints from employees who attended the party at a restaurant in the inner-north for depot employees.