- Contractual benefits – if bonuses are included as a benefit in employment T&Cs or in the employee handbook, employees have a right to expect them and you’re under obligation to pay – or risk a breach of contract claim.
- Discretionary bonus systems – if you operate under these terms, you have much more flexibility in terms or amending or removing bonus payments. However, if you’ve consistently made this payment, it can be deemed a custom or tradition has been established by the employer, and therefore employees have a claim.
Christmas Bonuses – should you, can you, MUST you?! Christmas bonuses can improve employee engagement, boost morale and even attract the most talented applicants for a particular position – but tradition can turn into expectation, and if circumstances change and you can’t afford to pay up this year, do your employees have a claim against you for not coughing up the cash? The rules around Christmas bonus payments aren’t totally clear cut, but here are the most common scenarios and what they mean to you: