Do I have to repay my joining bonus if I resign?

Joining bonus with a repayment condition if you leave early? See the usual 12-month clawback traps, what to negotiate, and a pro-rata clawback clause.

The risky clause

If the Employee leaves within 18 months, the full joining bonus must be repaid within 7 days of the last working day.

Why it is dangerous

A full repayment after 17 months makes the bonus almost worthless. A pro-rata clawback reflects the time you worked, and tax already deducted should be considered. Clarify whether you repay the gross or net amount, and what happens if you are laid off. This is general information, not legal advice.

Safer clause to propose

If the Employee resigns within 12 months, the net joining bonus received shall be repaid pro rata for the unserved months. No repayment is due if employment ends by Company termination or redundancy.

Message to send

Hi [HR Name],

Could the joining bonus clawback be pro rata over 12 months, on the net amount, and not apply if the Company ends my role? Thank you, [Your Name]

Frequently asked questions

Is joining bonus clawback legal?

It is a contract term, so it can apply, but you can negotiate scope. Courts look at reasonableness.

Do I repay gross or net?

Check the clause. Ask to repay the net amount you actually received.

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