What Employers Should Consider When Giving Bonuses


As an employer, one great way to show appreciation for your employees is through holiday or end of year bonuses. However, if you are giving your employees a bonus this year there are somethings you want to keep in mind.

Different Types of Employee Bonuses

First, not all bonuses are the same and the type of bonus you are giving your employees matters. Two common types of bonuses are holiday bonuses and end of year bonuses. While these two phrases may seem interchangeable, in actuality they are pretty different.

What is a Holiday Bonus?

A holiday bonus is typically a gift, with the same gift given to all company employees.

What is an End of Year Bonus?

An end of year bonus is typically tied to aspects of the employee’s performance at the company and the amount given to each employee may vary.

Once you decide what type of bonus you want give your employees, it is important that you treat all similarly situated employees the same. This means that if you decide to give holiday bonuses all employees in the same or similar positions should be given the same bonus, and if you decide to give an end of year bonus, the same formula should be used in calculating the amount of each employee’s bonus. Even outside of giving bonuses, treating all similarly situated employees equally is a best practice that will help your business avoid any claims of discrimination by your employees.

Happy holidays from our team at Slate Law Group. Feel free to reach out if you have any questions regarding Holiday and End of Year Bonuses.

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