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> If he's leaving less than a year in and his partner has the contractual authority to sever his employment, what he actually has is zero. FWIW that's only tr
by Alex3917 6y ago
> If he's leaving less than a year in and his partner has the contractual authority to sever his employment, what he actually has is zero.
FWIW that's only true if he was being paid at least minimum wage. Otherwise he would be entitled to some equity even if he didn't hit his cliff.
- tptacek 6y agoInteresting. Say more? Thanks!
- Alex3917 6y agoIANAL, but my understanding is that in order for the company to keep ownership of your designs, code, and other IP, you'd need to get some sort of consideration for that work. If you've been paid at least minimum wage then that counts as consideration, but if you haven't then you need to negotiate something reasonable in situations where a founder leaves the company before their 1-year cliff. 3% is fine, 0% wouldn't be fine though, unless again he had been getting paid. This is the reason why startups are always supposed to pay each founder at least minimum wage, even though normal employment laws usually don't require an owner of a business to pay themselves anything.
- Robin_Message 6y agoIn the UK, founder agreements and similar with IP clauses are signed as deeds, not contracts. I understand the salient legal point is that a deed does not require consideration. Might be different in other jurisdictions.