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How the employees choose to see it is irrelevant if the conditions are clearly spelled out. That said, it would not be surprising for a court to force partial
by nknight 15y ago
How the employees choose to see it is irrelevant if the conditions are clearly spelled out.
That said, it would not be surprising for a court to force partial payment if the "cause" is particularly flimsy or the timing excessively suspicious. Good faith is an implied part of contracts in almost all jurisdictions (even if it's not explicitly called that), and evidence of a party acting in bad faith, even if the letter of the contract was adhered to, may result in damages being awarded.
- dctoedt 15y ago> it would not be surprising for a court to force partial payment if the "cause" is particularly flimsy or the timing excessively suspicious. For that kind of upside, an employee might well roll the dice with a lawsuit, even if it were his or her case that was flimsy. Some years ago, a client let an employee go (for poor performance) about a month before one of the annual stock option cliff vests. The employee sued, claiming that the company wanted to keep her from getting her next vest. The client settled the lawsuit, and soon afterwards, changed its ESOP so that the first vest would still be a cliff at one year, but then subsequent vesting would be quarterly. That way, there was much less incentive for disgruntled former employees to file lawsuits of that kind (and no one else ever did).