She tells the CEO that the plan is most unwise. If the executive is At age 55, Fred is covered by the Age Discrimination in Employment Act of 1967. That law prevents employers from using age as a basis for hiring or firing people ages 40 and above. Any form of bonus pay-out in December would imply that the executive's performance is within the range which the company still considers acceptable for employment. In a scenario when a December bonus is followed-up with a January dismissal, the executive might come to the conclusion that the firing has less to do with performance and more to do with age.
Age discrimination is the fastest growing type of bias charge in the workplace.
Thus, if the CEO provides any year end bonus, that act can be used against the company if the action is contested on the grounds of age discrimination. On the other hand, to provide all employees except one with a year end bonus would certainly ruin that executive's Christmas. It would also serve as a strong signal that he ought to look elsewhere for employment. That Is Not Working. Most of our corporate sponsors who fire people around Christmas are caring individuals who are upset at this unfortunate timing.