How do you Human Resource Gurus (and anyone else that wants to reply)feel about giving "end-of-the-year" bonuses to employees that are treading on thin ice? We have an employee that probably will lose their job in the near future because of poor work performance. Management wants to give the employee a small bonus anyway because it's Christmas. Do you think this could cause problems if we end up terminating the employee?

What is the criteria for bonus allocation? Is it a "holiday" bonus that everyone gets? Is it performance based? Is it discretionary?

I think that it's generous of your management to give a year end bonus.
My question is, does the employee know that he/she is on thin ice?
Are the employee issues documented? If all is in order in those
respects, you are probably safe to give the bonus.

As long as it is not a "pay for performance" bonus - I think you are OK. If it is a "pay for performance" bonus - I think your bonus program needs to be reviewed. Most "pay for performance" bonus programs excluding individuals that have reached a specific point in the disciplinary process.

For the last 7 years bonuses have been based on performance. However, our CEO "retired" recently and new management is calling the bonuses "Christmas bonuses" but are actually basing them on performance. The employee in question has been informed that they are treading on thin ice but I don't believe it has been documented. I just want to make sure we are not setting ourselves up for future problems.

Well, as long as it has not progressed to a formal disciplinary process at this time, I don't see a problem. Sounds like you need to get one started however. And at the risk of starting the "great debate" again - you may want to instruct them to refer to them as a "year-end bonus" in order to stay PC and not create a hostile work environment.

I beg for no-one to start that big debate again - even if you do disagree