Can a company change what is promised in a hiring contract?
Question Details:
When i was hired almost 5 yrs ago my contract of employment states that, "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". When about 10 months ago I asked for a share in the company, I was told by the CFO that they are not offering it any more. Do I have a right to equity in the company? Also, things have changed since I was hired; I have changed to part-time but no new contract was given. Also, they are laying off people and if Iwas the next person laid off do I still have a right to shares?
Employment and Labor Law Answers
The key thing is, did the contract say that employees WILL be offered options? (And also specify the amount, the timeline, etc.) If so, then you would have a claim for the options, since the contract would obligate the company to offer them to you. You should have received the contracted-for amount, at the contracted-for time.
However, if the contract did not make a grant of options mandatory--if it merely expressed that the company could or may offer them--then there is no claimm.
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