How to issue a bonus order for employees?

How to issue a bonus order for employees?

Bonuses are pleasant event for every employee. It is important for the manager to correctly formalize the legal aspects of the award. Otherwise, it can lead to unpleasant conversations with the tax authorities.

What are premiums and their types?

A bonus is an additional type of earnings, independent of wages. Workers can receive it depending on their goals. This can be a reward, an additional incentive, or a reward for the work done. There are one-time, reusable and permanent awards. With disposables, everything is more or less clear, but reusable ones may differ. They can be paid depending on the time (for example, on the 5th day of each month or after a certain period of time, for example, every 30 days) or for the performance of a certain amount of work.

Awards can be individual or collective. One employee can receive a collective award and together with it he can receive an individual award. The bonus can be either dependent on the result of labor, or not related to it. If the award is considered as an incentive independent of the result of labor, the following reasons can be distinguished:

✅ Experience

✅ Compensation payments

✅ Loyalty program from the company

✅ Incentive bonus

✅ Execution of personal errands

Awards, especially in a private enterprise, can be awarded for a variety of merit. There is a clear system of reasons for receiving such remuneration at state-owned enterprises.

How to correctly fill out an application for the payment of bonuses to employees?

There are instructions from the Ministry of Labor and Social Policy of Ukraine dated January 29, 2003 on organizing labor incentives for employees of enterprises and organizations. This order will help not only reward employees, but also improve this system, as well as improve existing systems in enterprises and develop new ones. This order will help you become familiar with concepts such as:

? Material incentives for labor

? The system of material incentives for labor

? Reward

? Award

? Supplements

The order on bonuses to employees must contain the name of the organization and the number of the order. Next, the main part of the document is filled in. It indicates on the basis of what rules of the law will be awarded, to whom and for what will be awarded, what size and type of prize is applied and when it will be awarded. The document must contain the seal of the organization and the signature of the director or an appropriate authorized person.

Do not forget a manager can either reward employees or deprive them of bonuses at a time or on an ongoing basis.