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.
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?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.
This seems like poor advice to me.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.
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?
Although if the employee was not in the new job by December 31st then he will get no P60 at all.