- Christmas Bonus
- A discretionary or contractual payment made to employees at year-end, typically tied to the Christmas season, as a reward or gesture of goodwill.
- Eligibility Criteria
- The specific conditions an employee must satisfy β such as minimum tenure, satisfactory performance, or active employment status β to qualify for a bonus.
- Discretionary Bonus
- A bonus the employer chooses to pay based on business conditions and individual performance, with no contractual obligation to do so.
- Contractual Bonus
- A bonus explicitly promised in the employment contract or offer letter, which the employer is legally obligated to pay when conditions are met.
- Probationary Period
- A defined initial employment period β typically 30 to 90 days β during which the employee may be subject to different benefit and compensation rules.
- Performance Improvement Plan (PIP)
- A formal document outlining performance deficiencies and required improvements, often used as a basis for excluding an employee from discretionary awards.
- Employee Handbook
- A company document describing policies, procedures, and employee entitlements β the primary source of written bonus eligibility rules.
- Ineligibility Notice
- A formal written communication informing an employee that they do not qualify for a specific benefit, award, or payment in a given period.
- Accrued Entitlement
- A compensation element an employee has earned a legal right to receive, which cannot be withheld without contractual or statutory justification.
- Good Standing
- An employment status indicating no active disciplinary actions, performance plans, or policy violations β often a prerequisite for bonus eligibility.