from your legal obligation to pay holiday bonuses to the Labor Standards Act, we've put everything you need to know about Lunar New Year and Chuseok bonuses in one easy place. Plus, check out our full-time vs. part-time non-discrimination rules.
table of contents
- what are holiday bonuses?
- are you legally required to give them?
- if it's in your employment rules
- can you give different bonuses to different workers?
- no just because you're a temporary worker
- frequently asked questions
- wrapping Up
what are holiday bonuses?
when a big holiday like Lunar New Year or Chuseok rolls around, there's one thing most workers look forward to: holiday bonuses. These bonuses are often a small consolation prize for workers who have worked hard all year.
but after the holidays are over, you'll find yourself talking to your coworkers. someone got a holiday bonus and someone else didn't, or a full-time employee got a holiday bonus and a part-time employee didn't, even though they work for the same company. This naturally raises questions. are we legally required to give holiday bonuses?
are they legally required to be paid?
the short answer is no, it's not a legal requirement under the Labor Standards Act, and you won't find any regulations on holiday bonuses anywhere in the Labor Standards Act.
in other words, if a company doesn't pay Chuseok bonuses or Lunar New Year bonuses to its employees, it's not breaking the law. Since it's not required by law to pay bonuses, it's a matter of company discretion.
this is why some companies give generous bonuses for the holidays, while others don't give them at all, depending on the company's size, business situation, and industry.
if it's in the work rules
there is an exception to this rule: if your company's internal policies, such as employment rules or a collective bargaining agreement, specify that you have to pay holiday bonuses. in this case, the company must give you a holiday bonus even if the law doesn't directly require it.
for example, if your employment rules say, "100% of your base salary will be paid as a holiday bonus on New Year's Day and Chuseok every year," your company must follow this rule. if the company doesn't pay the bonus, it could be considered wage arrears.
in fact, many mid-sized and large companies have a clear policy on holiday bonuses in their employment rules. Check the policy carefully when you join the company or at the beginning of the year to see if your company offers holiday bonuses and, if so, how much.
can it be different for different employees?
so, does a company have to give the same holiday bonus to all employees? Not necessarily. Companies can set their own criteria and scope for differential bonuses.
for example, if your employment rules state that "holiday bonuses are only given to employees who have been with the company for at least three months," then some new hires might get them and some might not. Or, if you have a policy that says "holiday bonuses are given on a sliding scale based on years of service," then a five-year employee might get a different amount than a one-year employee.
there's nothing wrong with differential pay based on tenure, position, performance evaluation results, etc. as long as there's a good reason for it, and companies often do this as part of their human resources management.
just don't do it because you're a contingent worker
but here's the catch: the law prohibits differential bonuses based solely on employment status.
in other words, giving a bonus to a full-time employee but not to a part-time employee because they are part-time would be clear part-time discrimination. Our law strictly prohibits discrimination between full-time and part-time employees without a reasonable cause.
the scope of this prohibition includes all wages, including bonuses, as well as working hours, holidays and vacations, health and safety, and anything else that an employer is obligated to provide. So if you have regular and non-regular employees doing the same job, you can't give a holiday bonus to one just because of their employment type.
if you've been discriminated against in this way, you can file a complaint with the Labor Department or seek legal redress. In fact, there are a number of case law decisions that have found discrimination for not paying holiday bonuses to temporary employees.
frequently asked questions
Q1. I've only been with the company for a month, but I didn't receive my holiday bonus. Is this fair?
A. If your employment rules state that it's only given to employees who have been with the company for a certain amount of time, then yes, it's fair. However, if there's no such rule and you're excluded because you're a new employee, then it could be a problem. check your employment rules first.
Q2. If my company doesn't have an employment rule, can I not receive a holiday bonus?
A. Even if you don't have a policy, you may be entitled to it if it's been customary to pay it every year, especially if it's been done the same way for years, as it may be recognized as part of your terms and conditions of employment.
Q3. My company didn't give me a holiday bonus this year because of poor performance, is this possible?
A. If your employment rules state that holiday bonuses must be paid, they must be paid regardless of the company's performance. However, there may be an exception if the rules contain a clause stating that they may not be paid due to business conditions.
Q4. Are part-time workers eligible for holiday bonuses?
A. Part-time workers are entitled to holiday bonuses as long as the rules don't specify that only full-time employees are entitled to them, and the type of employment is different. It's reasonable to pay them proportionally to the number of hours worked.
Q5. Can I report my employer for wage arrears if they didn't pay me a holiday bonus?
A. If your employment rules or collective bargaining agreement require you to pay a holiday bonus and you haven't, you can report it as wage arrears. You can file a complaint with your local labor office.
wrapping up
while you're not legally required to pay holiday bonuses, if your workplace rules state that you must, it's important to remember that you can't discriminate based on employment status. it's a good idea to check your company's workplace rules and reach out to your human resources representative if you have any questions.
we'd love to hear how your company handles holiday bonuses - share your experience in the comments, it'll be helpful to others. For more great worker rights information, hit the subscribe button.