It's that time of the year again when Christmas is just around the corner, and for some, they can look forward to the added payment of a Christmas bonus.
But just who is entitled to get a little extra in their Christmas pay packet, and is it mandatory for employers to give one?
Many employers make the decision to offer their employees a Christmas bonus as a way to boost morale and thank staff for their hard work over the year.
However, employers are not obligated to give their staff a Christmas bonus as it is only seen as a goodwill gesture.
According to Peninsula, an employer must include that there is a chance they will not be issuing Christmas bonuses in the terms and conditions of employment.
It states: "In order for an employer to reserve that right not to offer a Christmas bonus this year it must be contained in the employee's terms and conditions of employment that any Christmas bonus issued is strictly at the discretion of the company."
If the employer has been paying the bonus every year for a number of years, the payment could be "classified as an implied term of the employee's terms and conditions of employment".
If this is the case, the employee could go in front of an employment tribunal and argue that they are entitled to a Christmas bonus.
For an employer to defend this case, they would need to show a copy of the terms of employment or a written instruction stating that payment of the Christmas bonus is at the employer's discretion.
They must also be able to justify why the company was not in a position to pay the bonus.
Employers should consider that if they choose not to give a Christmas bonus this year and have done so in previous years, their employees may pursue a claim through the Labour Courts, and they may be ordered to pay this bonus back to the employee.
