Risk of bonus clawback

fruecv

Hi friends,

I have a query which is causing me a bit of concern.
I wanted to know can a company claw back a bonus after you have handed in your notice?

The bonus relates to the past year's work and has been formally confirmed in writing (and is included in the contract as a 'discretionary bonus'). However it will not be paid for a few weeks.

If I resign before it has hit my account, is the company legally allowed to shaft me?? Has anyone been in this positon before and what would you advise me to do?

Thanks!

TELLIT01

It's pretty much normal practice for bonus payments only to be made if you are still employed by the company on the date the payment is made.
For example, when I worked for DWP, bonuses were payable if employed on the 1st of July. A large redundancy round had a finish date of 30th June. Guess how much of the bonus they all got!

DKLS

fruecv wrote: »

If I resign before it has hit my account, is the company legally allowed to shaft me?? Has anyone been in this positon before and what would you advise me to do?

Thanks!

Yes I have seen it many times, golden rule is to resign the day your bonus hits your bank account. Resign before that and wave goodbye to your bonus.