What to do if…
your employer says your bonus is being clawed back unexpectedly

What to do now

1. Get the claim in writing. Ask HR or payroll for:

   • the exact amount they say is owed, showing gross and net figures
   • how they calculated it
   • the reason, such as payroll overpayment, resignation or notice condition, retention rule, sign-on bonus rule, performance condition, or misconduct clause
   • what they plan to do next, such as payroll deduction, invoice, or repayment plan
   • the specific contract term, bonus plan rule, signed authorisation, or policy they rely on.

2. Save the documents before replying in detail. Keep copies of:

   • your employment contract and any changes to it
   • the bonus scheme or plan rules for the relevant year
   • the bonus award letter, bonus confirmation email, payslips, and portal screenshots showing the bonus terms
   • emails or messages about targets, eligibility, resignation, notice, leaving rules, and any “good leaver” or “bad leaver” wording.

3. Separate a payroll overpayment from a clawback condition.

   • If they say it was a payroll overpayment, ask for the corrected calculation and ask them to pause any large one-off deduction while you check the figures and discuss a manageable repayment plan.
   • If they say it is a clawback condition, ask them to identify the exact term that existed before the bonus was paid or accepted. If you do not agree, say clearly in writing that you do not agree to the proposed deduction while it is being reviewed.

4. Ask for any deduction to be paused or made manageable. If the amount is large, or a deduction would leave you short for rent, food, bills, travel, childcare, or debt payments, tell payroll in writing and ask for a fair repayment plan while the dispute is checked.

5. Check the timing and wording if this is linked to leaving or notice. Look for terms such as:

   • “must still be employed on payment date”
   • “must not be under notice”
   • “must remain employed for a set period after payment”
   • pro-rata repayment wording
   • rules saying what counts as notice, resignation, dismissal, or leaving.

6. Send a short dispute email the same day if needed. Keep it calm and specific, for example: “I dispute that I owe this amount as stated. Please provide the clause or policy, the calculation, and the payroll correction plan. Please pause any deduction while this is reviewed.”

7. Ask payroll how tax and National Insurance will be handled. Request written confirmation of:

   • whether they expect repayment of the gross or net amount
   • how PAYE and National Insurance corrections will be shown on your payslip
   • whether any correction affects year-end payroll figures or a P60
   • who you should contact if the tax or National Insurance position is unclear.

8. Use the employer’s formal process if you are not getting clarity. If HR or payroll will not pause, explain, or correct the issue, raise it as a formal grievance or under your employer’s formal pay dispute process. Attach the payslip, bonus wording, calculation questions, and your request for a pause.

9. If a deduction has already happened, act promptly. Save the payslip showing the deduction, note the payment date, and contact Acas for guidance. For many employment tribunal claims, Acas early conciliation is needed first, and time limits are strict.