Will I lose my bonus if I resign before the payment date in Australia?

It depends on whether the bonus is discretionary or contractual and whether your contract includes an 'employed on payment date' clause. A truly discretionary bonus with an express 'must be employed on the payment date' condition can generally be withheld if you resign beforehand. A contractual or guaranteed bonus is harder for the employer to forfeit, especially if the performance period has already been completed. Courts have found that discretionary bonuses must still be exercised in good faith — if you have written confirmation of an assessed amount, you may have a stronger argument.

Is a bonus clawback clause enforceable in Australia?

Clawback clauses are often enforceable in Australia, particularly for sign-on bonuses that represent an advance payment against a future service period. However, a clause that is drafted as a penalty, or one that requires a deduction from wages that is not principally for the employee's benefit, may be challengeable. Section 324 of the Fair Work Act 2009 limits what deductions can be made from wages — a clawback collected as a wage deduction on the final pay needs to meet those requirements. Get legal advice before assuming a clawback clause is enforceable.

Can my employer deduct a bonus repayment from my final pay?

Not automatically. Section 324 of the Fair Work Act 2009 only permits deductions that are authorised in writing by the employee and are principally for the employee's benefit, or that are required by law. An employer who takes an unauthorised deduction from your final pay may be in breach of the Act. If your employer tries to recover a clawback amount by deducting from final wages, contact the Fair Work Ombudsman on 13 13 94 (fairwork.gov.au).

What is the difference between a discretionary and a contractual bonus?

A discretionary bonus is one where the employer retains the right to decide whether to pay it and how much — the amount is not set in the contract. A contractual or guaranteed bonus is one that is specified in the employment contract, offer letter, or agreed remuneration package. Discretionary bonuses are easier for employers to withhold; contractual bonuses are harder to forfeit because they form part of the agreed terms of employment.

What should I do if I want to resign but have a large bonus due soon?

Review your contract for any 'employed on payment date' or 'not under notice' conditions. Check when the payment date falls relative to your notice period — if the payment date lands before your last day, you may still receive the bonus. If you want to formally reserve your rights while still resigning, consider using a resignation under protest letter. Get employment law advice before handing in notice if the bonus is material — the cost of advice is small compared to the amount at stake.

Bonus Clawback & Forfeiture Checker

Will you lose an unpaid bonus if you resign before the payment date? Must you repay a sign-on bonus under a clawback clause? Get a plain-English verdict, dollar estimate, and next steps. Covers discretionary vs contractual bonuses and Fair Work Act s324 limits on repayment deductions. Not legal or financial advice.

Last verified: 21 May 2026

General information, not legal or financial advice. This tool explores common legal principles around bonus forfeiture and clawback clauses in Australia. Every contract is different — get specific advice before making decisions about your employment.

What type of bonus is it?

DiscretionaryEmployer decides whether/how much to pay — not a fixed amount in the contractContractual / GuaranteedSpecified in the contract, offer letter, or as part of your total package

How much is the bonus? ($)

Enter the gross bonus amount — this is used to estimate forfeiture or clawback exposure in dollar terms.

Bonus amount ($)

Are you resigning before the bonus is paid?

I am resigning before the payment date (the bonus has not been paid yet)My contract includes a clause saying I must be employed on the payment date to receive the bonus (e.g. "employed and not under notice")

Is there a clawback or repayment clause?

Common for sign-on bonuses: the contract requires you to repay the bonus (or a portion) if you leave within a set period.

Yes — my contract has a clawback or repayment clause

General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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