To pay or not to pay: the Christmas bonus dilemma

By KMC Human Resources

18 Dec 2014

Christmas time can throw up a veritable feast of HR issues. In our Christmas series of blogs, we have so far addressed the perils of the staff Christmas party and also how to tackle staff holidays and holiday pay.

By Karen Credie, KMCHR.

In this final article of the series, we turn to Christmas bonuses and look at rewarding staff fairly and lawfully.

For many businesses, the payment of a Christmas bonus to reward staff for their hard work throughout the year is a nice thing to do. But get it wrong, and you could find a generous gesture turning into an employment tribunal claim.

If your business has had a good year and you want to issue a monetary reward to staff, there are a few things you need to consider. Are you going to give everyone in the business a bonus? Will the bonus be the same amount for everyone?

If only some members of staff are to receive a bonus, you need to be careful that you cannot be found at fault for discrimination or an equal pay claim. The grounds on which you award any bonus need to be made clear so all employees have an equal opportunity to be rewarded for their work.

Similarly, if you are paying a different amount to different members/teams of staff, the reasons for this need to be explained.

If the business has had a tough year or cash flow is tight, it could be that the payment of a Christmas bonus is just a step too far. However, employers need to be aware that if a bonus at Christmas time has been made for a few years on the run, this could be seen as having become ‘customary’ and therefore it could be argued that a bonus is a staff entitlement. Where this is the case, employers who decide to reduce the staff bonus or not pay one at all one year could find themselves at risk of claims from employees.

Should you wish to maintain flexibility in the payment of bonuses, you need to ensure that any documentation relating to the payment of a bonus, at Christmas or any other time, highlights they are payable only at the discretion of the company and for a discretionary amount. For help and advice on paying bonuses at Christmas time or throughout the year, or if you are facing a claim from an employee based on the payment / non-payment of a bonus, please get in touch with us.

Latest news

1

EG On The Move completes Applegreen UK acquisition Zuber Issa

EG On The Move completes Applegreen UK acquisition

03 Feb 2025

2

CoolKit designated as Preferred Partner for MAN TGE Rupert Gatty, Andy Parker, Bodybuilder Manager, MAN Truck & Bus SE / Cameron Javed, Head of Fleet Sales, CoolKit

CoolKit designated as Preferred Partner for MAN TGE

03 Feb 2025

3

Multiversity compulsory purchase order confirmed in Blackpool Aerial photo of Multiversity in Blackpool

Multiversity compulsory purchase order confirmed in Blackpool

03 Feb 2025

4

JM Glendinning Lancashire boosts growth with two appointments Chris Newton and Rachael Hacking

JM Glendinning Lancashire boosts growth with two appointments

03 Feb 2025

5

Lancaster University green technology spin-out aims to boost biogas-bioenergy sector AdTech Optima

Lancaster University green technology spin-out aims to boost biogas-bioenergy sector

31 Jan 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

February Preston Tech Connection Meet-Up: Tech & Our Planet
PRESTON TECH CONNECTION jan.ai.png.png
LBV Hub Networking
12 Feb 2025 - 12 Feb 2025

February Preston Tech Connection Meet-Up: Tech & Our Planet

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Police Apprenticeship event
Student Centre Autumn 2022.jpg.jpg
LBV Hub Social
12 Feb 2025 - 12 Jan 2025

Police Apprenticeship event

University of Central Lancashire, Foster Social Space , Preston , PR1 2HE

16:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
13 Feb 2025 - 13 Feb 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Amber River True Bearing Quarterly Investment Seminar
LBV Hub Seminars
13 Feb 2025

Amber River True Bearing Quarterly Investment Seminar

Mercure Blackburn Dunkenhalgh Hotel & Spa, Blackburn Rd, Clayton-le-Moors, Blackburn, Lancashire, BB5 5JP

16:00 - 18:00

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase
Student Centre Autumn 2022.jpg.jpg
LBV Hub Networking
14 Feb 2025 - 14 Jan 2025

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase

Media Factory , Preston, PR1 2HE

08:00 - 10:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
Employment updates - LinkedIn East Lancs-01.png.png
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Level 3 Emergency First Aid at Work Course - In Person
RKMS ACADEMY LOGO - BLACK AND ORANGE.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Level 3 Emergency First Aid at Work Course - In Person

RKMS Group , Blackpool, FY42DP

09:30 - 17:00

Preston Freelancer Meet-Up: February
Freelancer Meet-Up Feb.png.png
LBV Hub Networking
26 Feb 2025 - 26 Feb 2025

Preston Freelancer Meet-Up: February

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin