Bah Humbug Bosses. No Christmas Bonus, Episode 591

Niall opens the phone lines to callers today after an email from a frustrated father of two who says a recent change in management at his workplace has led to the scrapping of the annual Christmas bonus. For him, it’s more than just money — it’s about recognition. “It’s stingy and shows a lack of respect for staff not to give at least a week’s extra wages at Christmas,” he writes.

So is he right?

On the programme, Niall explores whether a Christmas bonus should be seen as a goodwill gesture — or a basic expectation, especially at the most expensive time of the year for families. In many countries including Greece, Portugal, Spain, Italy, Austria, Slovenia and others, Christmas bonuses are either legally required or firmly embedded through collective agreements. Supporters argue these payments acknowledge rising living costs, reward loyalty, boost morale, and show that employers value the people who keep their businesses running.

But there’s another side to the debate. Opponents say bonuses should reflect performance, not the calendar. Small and medium-sized businesses in particular argue that mandatory bonuses could put jobs at risk, reduce flexibility, or force employers to cut back elsewhere. Others point out that if a bonus becomes a legal obligation, it stops being a “bonus” at all — just another wage cost.

So where do you stand?
Is removing a Christmas bonus a sign of corporate stinginess and disconnect from staff — or a necessary business decision in uncertain economic times?
And should employers be legally obliged to pay a Christmas bonus, or should it remain discretionary?

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