Can a company change what is promised in a hiring contract?

Question Details: The contract of employment states that in THIS WORDING , "Employees are offered equity in the company in the form of options. These options have a vesting period of 3 years and start after probation period of 6 months". Now does the words ARE OFFERED mean that they WILL be offered? Also the contract does NOT say how much.

Asked 11/13/2009 under Employment and Labor | 167 View(s) | More Legal Topics

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Employment and Labor Law Answers

"Are offered" does not mean "will be" offered. Putting that together with the fact that no amount or formula to determine an amount is given, and it appears that the contract is advising employees of a potential benefit they may receive, not creating a contractual committment requiring the options to be given. The lack of imperative or mandatory language, as well as the lack of any of the details that would be necessary to actually enforce a requirment for options, lead to this result. Companies often describe benefits that may or would like to give, without binding themselves to providing them.

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