Definition
A bonus is a special payment made by the employer in addition to the regular salary, which is typically linked to the employee’s continued employment on a specific date – the best-known example being the Christmas bonus. If it is paid for several consecutive years without reservation, a legal entitlement to future payment arises. A discretionary clause can prevent this, but must be formulated clearly and consistently. Cut-off date and repayment clauses are permissible, but only within certain limits – for payments up to one month’s salary, the commitment may not extend beyond 31 March of the following year.
Specialist solicitor in employment law
Over 15 years’ experience in employment law
Classification under employment law
A Christmas bonus may be based on an employment contract, a works agreement, a collective agreement or established company practice. Cut-off date clauses and repayment reservations are only valid under strict conditions.
Distinction from related terms
13th month’s salary: The 13th month’s salary is generally a fixed, agreed-upon additional payment of a remunerative nature. A gratuity, on the other hand, may also be linked to length of service or other conditions.
Bonus / variable remuneration: Bonuses are usually performance-related. Gratuities are often paid regardless of individual performance, for example as a special payment on specific occasions.
Practical tip
Practical tip: If your employer has paid a Christmas bonus without reservation for three consecutive years, you may be entitled to it on the basis of established company practice – even without a contractual provision. Check whether your payslip includes a clause stating that the payment is at the employer’s discretion.
