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As the holiday season approaches, employers often face the dilemma of determining Christmas bonuses for their employees. Some companies provide a consistent amount each year, but the basis for this figure can vary. It may stem from prior year's revenue, be a set percentage of profits, or be calculated using a sliding scale related to job performance or total revenue. There's also the question of eligibility—whether every employee, regardless of their length of service, receives a bonus, and if amounts differ based on tenure. Companies must also consider how to handle bonuses in a year without profit, raising the possibility of not issuing a bonus at all.
