Davie told BBC news last Thursday (1 August) that employees’ pay is “very difficult to claw back, nigh on impossible” as well as “legally challenging” but he said he would look at all options available.
Jim Moore, employee relations partner at HR consultants Hamilton Nash, told HR magazine that pay could only be recovered from employees if stated in a contract.
“Employers can lawfully reclaim sums paid to employees, but only if the employment contract has a specific clause that allows for this,” he explained.
“It's common for contracts to mention deductions for overpaid wages, for example, or for lost or damaged equipment that the company provides. There might also be a clause for recovering a portion of a sign-on bonus if someone leaves within a year or two of joining.”
Edwards was arrested in November 2023, and resigned from the BBC in April 2024, citing medical problems. Before his resignation, Edwards was paid upwards of £479,999, according to the BBC’s annual report, which was a £40,000 pay rise from the previous year.
Davie's comment followed concerns from culture secretary Lisa Nandy, who raised questions about safeguarding at the BBC and how UK taxpayer money has been handled. The UK public currently pays £169.50 a year for the BBC licence fee.
Read more: Murder suspect unfairly dismissed over reputation risk, tribunal rules
Employers could recoup pay in exceptional circumstances when a settlement agreement is present, commented Oli McCann, a partner at the employment law, HR and health and safety firm AfterAthena.
Speaking to HR magazine, he said: "Unless Huw Edwards left under a settlement agreement which contains clauses for repayment where matters come to light afterwards which would have resulted in no “pay out”, then opportunities to recover payments made to an employee whilst employed are minimal."
The BBC might rely on breaches in warranty when seeking to reclaim Edwards' pay, McCann added.
"The only circumstances where I can see a right to reclaim monies paid to an employee are where the employee has misrepresented facts to an employer, which has resulted in certain payments being made by the employer to the employee," he explained.
"[Or] where an employee or ex-employee breaches a warranty in a settlement agreement – [including] when the employee is not aware of any circumstances which, if the employer was aware, would give an entitlement on the employer to terminate employment with immediate effect.
"This is the most likely clause the BBC would hope is in a settlement agreement which may open the door to claw back monies paid. If there was no settlement agreement then the BBC will struggle, as such clauses do not exist in employment contracts."
Read more: Majority of UK companies plan increased pay transparency
Moore was dubious that attempts to reclaim monies would be successful.
He continued: “The BBC is being put under severe pressure due a combination of Huw Edwards’ astronomical salary and public revulsion over the crimes he has admitted. But moral outrage does not sway the law, and BBC executives may find it difficult to find a reason to reclaim pay that holds up in court.
“It is not possible to arbitrarily claw back money paid to an employee just because they left under a cloud. Any attempt to reclaim money without a correctly drafted supporting clause in the contract may expose the employer to an 'unlawful deduction from wages' claim.”
