Bonus Clawback from employer

bashiraad

Hi, not sure if anyone can advise but my my ex employer imposed a bonus clawback for our 2012 bonuses.

The clawback basically said if we leave for a direct competitor in any time during 2013 they have the right to clawback our bonus at their discretion.

If we did not sign the clawback then we would not have revived our bonus.

As I have not left the firm they have written to me to ask for the money back. They said of I dot pay they will instruct a debt collecting agency and start legal proceeding.

I am not in a revenue generating role and work in IT.

I feel it was unfair for them to impose such a clawback and out us in a catch 22. I also want to dispute my new employer is not a direct competitor.

What can I do? Do I write back explaining my views and can I take them to a tribunal for unfairly imposing the clawback?

Any advise would be much appreciated.

Takeaway_Addict

Why are they asking for it back if you have not left, is it because you didn't sign?

Funky_Bold_Ribena

bashiraad wrote: »

Hi, not sure if anyone can advise but my my ex employer imposed a bonus clawback for our 2012 bonuses.

The clawback basically said if we leave for a direct competitor in any time during 2013 they have the right to clawback our bonus at their discretion.

If we did not sign the clawback then we would not have revived our bonus.

As I have not left the firm they have written to me to ask for the money back. They said of I dot pay they will instruct a debt collecting agency and start legal proceeding.

I am not in a revenue generating role and work in IT.

I feel it was unfair for them to impose such a clawback and out us in a catch 22. I also want to dispute my new employer is not a direct competitor.

What can I do? Do I write back explaining my views and can I take them to a tribunal for unfairly imposing the clawback?

Any advise would be much appreciated.

Could you explain - what do you mean revived the bonus?

Have you actually left the company?

Did you sign the clawback clause?

What business is your old employer in and what business is the new employer in?

notanewuser

Takeaway_Addict wrote: »

Why are they asking for it back if you have not left, is it because you didn't sign?

I think it was meant to say "have now left".

Jules2012

If you signed it then you agreed to it.

However maybe the reasoning for the clawback isn't enforceable?!

notanewuser

Funky_Bold_Ribena wrote: »

Could you explain - what do you mean revived the bonus?

Have you actually left the company?

Did you sign the clawback clause?

What business is your old employer in and what business is the new employer in?

Think he means "received the bonus". To do so he must have signed the clawback clause.

Funky_Bold_Ribena

notanewuser wrote: »

Think he means "received the bonus". To do so he must have signed the clawback clause.

I've been here long enough to know that you need OPs to confirm certain things - don't make assumptions as it is an unholy waste of time.

3 days later you find what they actually wrote wasn't what you thought they meant.

bashiraad

Sorry to confirm I have recieved the bonus but have since left.

I had to sign otherwise I would not have recieved anything. After this the oppurtunity came up in another firm wich I took.

Both firms are in financial services. My new company is also a client of the ex company. Can the new company still be defined as a competitor.

If they send a debt collection agency to ask for the money with this show in my credit history?

bashiraad

Sorry the iPhone auto correct is so bad.

Funky_Bold_Ribena

bashiraad wrote: »

Sorry to confirm I have recieved the bonus but have since left.

I had to sign otherwise I would not have recieved anything. After this the oppurtunity came up in another firm wich I took.

Both firms are in financial services. My new company is also a client of the ex company. Can the new company still be defined as a competitor.

If they send a debt collection agency to ask for the money with this show in my credit history?

I imagine you would be hard pressed to argue they aren't a competitor if they are both in financial services.

Didn't they stop it out of your last month's wages?

Takeaway_Addict

But you signed it knowing the conditions of recieving it so I can't see how you think you can get out of it.

A customer is likely to be close enough for the ex company to claim it back as there are bound to be conflicts (you know the ex company way of doing things etc).

Ultimately I see two options:

1) Pay it back
2) Pay for legal advice and see what the professional opinion is on the contract you signed.

How much are we talking about?