It will be the first time they have received a festive pay-out since 2007, when workers picked up a record £1,000 each.

Shopfloor workers at JCB’s 10 factories will also receive a 4.7% pay rise from New Year’s Day as part of a previously-agreed deal.

JCB bosses still predict challenging trading conditions in the New Year, but the firm has been boosted by a clutch of big orders.

JCB was one of the first businesses to feel the full impact of the recession back in early 2008.

Staff even voted for a shorter working week to help save jobs, although JCB was eventually forced to shed 1,800 jobs.

However, 2010 has been a much better year for the company. JCB says its order books are starting to fill up again.

In November, JCB announced that it had signed a multi-million pound contract to supply hundreds of vehicles for the British Army. It is the biggest order made by the army in 25 years.

JCB bosses say they hope to sell 50,000 diggers this year. That’s around 15,000 more than 2009.

They also confirm that more orders are coming in from countries like China and India.