Bonus Clawback from employer

bashiraad

We are talking over £10k

They can dock it out because my mothly is no where near what the bonus was.

Can I take them to a tribunal?

Also if I refuse the pay this back can it affect my credit history as I am looking to buy a house this year.

Does anyone know any good employment lawyers?

Takeaway_Addict

bashiraad wrote: »

We are talking over £10k

They can dock it out because my mothly is no where near what the bonus was.

Can I take them to a tribunal?

Also if I refuse the pay this back can it affect my credit history as I am looking to buy a house this year.

Does anyone know any good employment lawyers?

Don't just take suggestions of a website, do some research for lawyers in your local area and I don't believe you can take them to a tribunal (for what exactly anyway?).

You are defending this claim from the ex employer.

Because of the amount involved it would be worth spending a hundred quid or so to see your exact position

bashiraad

Thanks for all your advice.

I will seek legal advice

AP007

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?

Over £10K????

If you signed only to get the bonus then you have to pay it back and if you knew you would leave then maybe you shouldn't have accpeted the money

notanewuser

I'd be surprised if the clawback contract weren't watertight.

In terms of your credit, if they come after you and get a CCJ against you then it's going to be hard getting a mortgage. Changing employer also won't help.

Funky_Bold_Ribena

bashiraad wrote: »

We are talking over £10k

They can dock it out because my mothly is no where near what the bonus was.

Can I take them to a tribunal?

Also if I refuse the pay this back can it affect my credit history as I am looking to buy a house this year.

Does anyone know any good employment lawyers?

Yes I do. If you knew you would be looking for another job, then perhaps that money should have been out aside and not spent.

Good luck with that!

ValHaller

AP007 wrote: »

If you signed only to get the bonus then you have to pay it back and if you knew you would leave then maybe you shouldn't have accpeted the money

Why are people giving such black and white answers on this, without the facts to support an answer one way or the other?

The clawback is predicated on OP going to work for a direct competitor. We do not know whether the new employer is a direct competitor. All we know is that the new employer is a client of the old company.

A client is far from being automatically a competitor. I am a client of my dentist, my hairdresser and my solicitor. Does that make me a direct competitor?

The answer depends on the precise wording of the clawback agreement - and if it hinges on whether the new employer is a direct competitor, then the old employer has to prove that the new employer is a direct competitor.

There is no clear cut answer to this unless we know who the respective employers are.

lippy1923

Call me cynical but I find it hard to believe anyone would sign a contract just to get a £10k bonus then leave the firm a few months later and expect to keep the money. Can you prove the new company is not a competitor?

What exactly would you take then to a tribunal for?

You need to be careful, you could end up with a CCJ against you which would stuff up your chances of getting a mortgage in the next 6 years.

What are your reasons that justify you keeping the money?

Seek legal advice.

ValHaller

lippy1923 wrote: »

Call me cynical but I find it hard to believe anyone would sign a contract just to get a £10k bonus then leave the firm a few months later and expect to keep the money. Can you prove the new company is not a competitor?

What exactly would you take then to a tribunal for?

You need to be careful, you could end up with a CCJ against you which would stuff up your chances of getting a mortgage in the next 6 years.

What are your reasons that justify you keeping the money?

Seek legal advice.

1) If the old employer goes to court, it is for them to prove that the new employer is a direct competitor

2) A CCJ does not stuff your chances of getting a mortgage or affect your credit in any way - as long as if you lose you comply with the court order for repayment. People should not be afraid to let a case go to court for fear of losing if they believe that they are in the right

Jules2012

I think legal advise is your best bet, even if its "watertight" to me it's an unfair clause. And it's irrelevant how soon you left afterwards, bonus is about performance for the previous year.

If you do end up with a CCJ, you will not be able to apply for any jobs in the Finance sector or any other industry that do credit checks on new staff.