As the festive holidays unfold, the issue of Christmas bonuses becomes a subject that confuses most people. Both employers and employees are usually confused on the subject and begin to sort out whether the employers are to pay a Christmas bonus or not.
What is a Christmas bonus? As the name implies, itâ€™s one-time payment employees receive in addition to their normal salary during the Christmas period. Employers that can afford to pay Christmas bonuses may use them to encourage their employees. Christmas bonuses help to improve staff morale by allowing them to have a little more to spend during this time of the year. It could also represent a lucrative incentive for employee retention.
Must employers pay a Christmas bonus?
The answer depends on a whole lot of facts. First, a Christmas bonus will depend on the contract of employment which outlines the type of relationship that exists between the employer and the employee in writing. Other facts to consider include the employee handbooks and job appointment letters.
It is safe to assume that employers must pay Christmas bonuses if the contract of employment states it categorically that the employee will receive a bonus at Christmas since the contract bounds the parties. For