Would it do any harm to not attend your employer's Christmas party...

OP, I am in the same situation as you, and I do think it is important to go. This is pretty much the only face time I get with my employer, so while he wouldn't fire me for missing the party I would be missing an opportunity to build that relationship.

It is very awkward, but if you can bring a +1, do. Mine was a dinner thing, so I just talked to my SO until we sat down to eat, then dinner conversation once you are all fixed in your seats is easier.