Dear Professionals,
My colleague asked me a question that I found to be interesting.
Her ESOP contract lists several scenarios for termination of employment due to which ESOPs can be forfeited. One clause says that "cessation of employment due to any other reason will result in ESOP forfeiture". If the termination is without any reason because the employment contract is an at-will contract (terminable with 2 months notice by either party) then is this clause valid? Is this a catch all clause? Isn't a reason needed here to forfeit ESOPs? Is "services not required" a reason or a result of a reason because of which services were terminated?
Kindly share your professional opinion.
From India, Gurgaon
My colleague asked me a question that I found to be interesting.
Her ESOP contract lists several scenarios for termination of employment due to which ESOPs can be forfeited. One clause says that "cessation of employment due to any other reason will result in ESOP forfeiture". If the termination is without any reason because the employment contract is an at-will contract (terminable with 2 months notice by either party) then is this clause valid? Is this a catch all clause? Isn't a reason needed here to forfeit ESOPs? Is "services not required" a reason or a result of a reason because of which services were terminated?
Kindly share your professional opinion.
From India, Gurgaon
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf