Legal Question in Business Law in India

Mr. A had an employment contract with a private limited company in which he was entitled to 1% ESOP after completing one year of his job. he joined the company on 1st June, 2015 but sent the notice for resigning from the job on 19th April, 2016.

As per the employment contract, he has to work for next 60 days for the company after sending resignation notice from the date of sending the notice. During this period, he is going to complete one year anniversary of his job. The question is whether he is still entitled for 1% ESOP given under the contract as per the Companies Act ,2013 and the Companies (Share Capital and Debentures) Rules, 2014?


Asked on 6/21/16, 5:10 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

21.06.2016

Dear Sir / Madam,

If the terms and conditions mentioned in the Appointment Letter do not clearly state that he / she should not have resigned the Company prior to completion of one year to be entitled for Employee Stock Option Policy (ESOP), A remains entitled for it, otherwise not, though in that case it remains at the sole discretion of the Company whether to give it or not.

Regards,

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Answered on 6/21/16, 7:34 am


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