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
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3My 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
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Termination-emp loyment_563.pdf
Termination letter.doc