A clawback in sales is when a commission paid to an employee in the past is legally reclaimed by the company. This can happen when a buyer returns a product or cancels a subscription before the end of the clawback period, or when an employee breaches certain terms of their contract. Every company has its own sales commission clawback policy. The clawback period is mentioned in each company's clawback clause, and differs from case to case.

Clawbacks help companies calibrate commission payouts and align them with actual revenues. Clawbacks also ensure that sales reps don't solicit short-term customers for quick commissions, but instead focus on closing long-term deals that bring in more value to the company. One of the main goals of clawbacks is to encourage sales reps to follow through with customers and ensure contracts aren't terminated prematurely.