# Old employer wants xmas bonus back



## rtj (14 Jan 2008)

I left my previous job mid dec. I got paid an xmas bonus two weeks later. Now they are contacting me looking for it back. I only got half the amount, the rest went on tax.

Where do I stand on this matter legally?


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## ClubMan (14 Jan 2008)

How did you get paid the bonus when you had left?! Were you entitled to receive this under your contract? If you do have to pay it back you can get the tax and _PRSI _deductions back by updating _Revenue _with the amended income details (e.g. updated _P60 _reflecting the situation once you have paid things back) and asking them to do a new _P21 _balancing statement. You would need to claim _PRSI_/health contribution overpayments back separately once you get the tax back.


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## Clarkey (14 Jan 2008)

ClubMan said:


> How did you get paid the bonus when you had left?! Were you entitled to receive this under your contract? If you do have to pay it back you can get the tax and _PRSI _deductions back by updating _Revenue _with the amended income details (e.g. updated _P60 _reflecting the situation once you have paid things back) and asking them to do a new _P21 _balancing statement. You would need to claim _PRSI_/health contribution overpayments back separately once you get the tax back.


 
If bonus is being paid back then it will be the after tax amount so there will be no tax and prsi to claim back.


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## teachai (14 Jan 2008)

So you worked almost the whole year and they want to deny you the christmas bonus because you left in december.  

This seems rather petty and mean.  

Try negotiating to keep 11/12ths of it. If this is a no go, then just keep the lot. Chances are that they won't want to go to court to claim for the amount as its generally going to be too much hassle for them.


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## ClubMan (14 Jan 2008)

Clarkey said:


> If bonus is being paid back then it will be the after tax amount so there will be no tax and prsi to claim back.



How does that work then? The employee's _P60 _will state that he paid tax and _PRSI _on income that he never actually received (or did and paid it back)? Surely that leaves the record out of whack?


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## ClubMan (14 Jan 2008)

teachai said:


> So you worked almost the whole year and they want to deny you the christmas bonus because you left in december.
> 
> This seems rather petty and mean.


For all we know the relevant contract of employment could clearly state that _Xmas _bonuses will only be paid to those in employment on a certain date in December or something?


> If this is a no go, then just keep the lot. Chances are that they won't want to go to court to claim for the amount as its generally going to be too much hassle for them.


This seems like poor advice to me.


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## Clarkey (14 Jan 2008)

ClubMan said:


> How does that work then? The employee's _P60 _will state that he paid tax and _PRSI _on income that he never actually received (or did and paid it back)? Surely that leaves the record out of whack?


 
P60 will have to be amended if and when bonus is paid back.


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## ClubMan (14 Jan 2008)

OK - thanks. That makes sense. Although if the employee was not in the new job by December 31st then he will get no _P60 _at all.


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## Yachtie (28 Jan 2008)

ClubMan said:


> Although if the employee was not in the new job by December 31st then he will get no _P60 _at all.


 
Very true! This means that the OPs P45 (assuming that the OP did not work for the last two weeks of December) is incorrect as the bonus and appropriate tax are not on it. In this case, you would only need to retun the net you were paid. 

Personally, I think it's very petty of a company to pay somebody a Christmas Bonus and then ask that it's given back, especially since the employee left mid-December. There is a lot to be said for intergrity over a few bob, but that's just me.


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## mathepac (28 Jan 2008)

There are practical / contractual as well as moral / ethical issues to be contended with in this situation as I see it.

If OP wants or needs to pay the bonus back, personally I would only offer a cheque for the net bonus payment with one hand if OP's original employer was putting an amended P45 in the other hand.


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## ajapale (28 Jan 2008)

moved from Other Financial Issues 
to
Work, Careers, Un/employment, Further Education/Training


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## TreeTiger (28 Jan 2008)

I always thought a Chrismas bonus was effectively an end-of-year bonus, given as a appreciation of services rendered during the year, not as an anticipation of how an employee will perform in the following year.  Perhaps you could explain why the company says you should return the bonus?

This report regarding a dealer in Davy stockbrokers may be of interest to you: http://www.rte.ie/business/2007/0126/davy.html?rss


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