Definitions

1. noun

A reduction in or cancellation of a benefit, payment, or advantage that was previously granted, especially one that is made in order to recover an overpayment or to rectify an error.

“The company implemented a clawback clause in the contract to ensure that the employee would return any overpaid bonuses.”

2. verb

To recover an overpayment or to cancel a benefit or advantage that was previously granted.

“The accountant had to claw back the excess funds from the client’s account to prevent a loss.”