How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Ben Jones Your Own Question

Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 44924
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
29905560
Type Your Employment Law Question Here...
Ben Jones is online now

Hello, I am near the end of the consultation period with the

Customer Question

Hello,
I am near the end of the consultation period with the known outcome :) However the process (pool selection, aim (or lack of it) to find me replacement job, obviously personal and political, not business reasons, etc) is obviously flawed in such a clear way that I was offered the 2nd version of compromise agreement in last 7 days. First one I rejected, the 2nd one is on the table. And I am thinking ...

They want now to pay me my notice (3 months) and 2 months ex-gratia.

Not sure that this is a good deal?
Truth is I am very employable, do not expect to look for a new job more than months.

However my main problem (and the question) is in the fact that I have lots of money in share options that are vesting in October and which I got, surprisingly as the key employee (under former management).

Now, In Options Agreement, as a leaver I loose the right to exercise those options, but in case i submit the claim to the Employment Tribunal because of the unfair redundancy, WOULD ET CONSIDER THIS AS MY FINANCIAL LOSS AND THE RESULT OF (IF PROVEN) UNFAIR REDUNDANCY AND GIVE ME COMPENSATION AWARD?
IF SO, WHICH PERCENTAGE OF THE SHARE VALUE, APPROXIMATELY?

Thanks,
Milan
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.
Hello, my name is XXXXX XXXXX it is my pleasure to be able to assist with your question today. Please let me know whether you have tried to negotiate to include the shares in the compromise agreement?
Customer: replied 3 years ago.

Hi Ben, thanks.


I haven't asked to add my right to exercise these options although I am not an employee (e.g one year after termination date), but I did negotiate about considering these options when calculating the ex-gratia amount.


 


The amount I am asking for was 30K + 3 months notice (they want to pay it in lieu, I said I don't mind working 3 months or not).


 


This amount is calculated based on the time they would need to spend if applying redundancy procedure properly ( ~2 months) + some percentage (not 100%) of these shares (currently worth 25K).


 


They said NO WAY unvested options can be considered and they explicitly put into CA draft the following:


 


"The Employee shall have 90 days from the Termination Date to exercise any stock options which were vested up to the Termination Date. For the sake of clarity, all other stock options granted to the Employee to purchase shares of NICE Systems Limited shall lapse and expire on the Termination Date and Employee shall have no right or claim in respect thereof."


 


Hope this answers your question,


Thanks,


Milan

Customer: replied 3 years ago.

Relist: Other. I really need advice today. Would wait for Ben if I knew when he would be back online.

 

 

Any chance somebody replies? 5h elapsed...

Thanks

Expert:  Ben Jones replied 3 years ago.
Hi I am afraid I was offline by the time you had replied. Do you still need help and I will be happy to assist?
Customer: replied 3 years ago.

Yes I do. Please

Expert:  Ben Jones replied 3 years ago.
A lot will depend on the terms of the share options scheme as that is what will govern your rights, even after dismissal.

For example, many employee share plans and stand-alone employee share award contracts can state that share awards or share options will be lost on ceasing employment. Saying that, it is possible for some share plans to treat different types of leavers in different ways so for example those that are made redundant or retired on ill health grounds could still be classified as good leavers.

Even if a restriction on what you can claim after leaving exists, this could not be legally binding. These restrictions are known as a Micklefield clause and case law has ruled that a former employee may succeed in claiming compensation for loss of share plan entitlements caused by unfair or constructive dismissal.

So yes, it is entirely possible for the tribunal to consider the shares as part of any award, although remember that the value of any award will b capped at around £72,000.

Please take a second to leave a positive rating as that is a very important part of our process. Your question will not close and I can continue providing further advice if necessary. Thank you
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 44924
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 3 years ago.

thanks very much Ben.


Micklefield clause:


 


http://www.mondaq.com/x/7525/Option+Schemes+clarity+covers+a+multitude+of+sins


 


was the perfect piece of information.

Expert:  Ben Jones replied 3 years ago.
glad you found this useful
Customer: replied 3 years ago.

For Ben Jones only
Hi Ben,

I decided to sign the CA offered. Would you be able to review it? Company pays 500£ for an independent legal advice. I am based in London. Thanks.

Expert:  Ben Jones replied 3 years ago.
Hi unfortunately we cannot do that for you as you need to formally engage a solicitor. Any employment lawyer should be able to take his on

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Ben Jones

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    10055
    Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
< Last | Next >
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    10055
    Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    41
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Laywer

    Satisfied Customers:

    49
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/taratill/2010-03-09_111600_phpsik04M_c2AM.jpg taratill's Avatar

    taratill

    Solicitor

    Satisfied Customers:

    661
    15 years experience of advising on employment law matters
  • http://ww2.justanswer.com/uploads/LI/li/2014-12-19_134845_lexughes.64x64.jpg Alice H's Avatar

    Alice H

    Solicitor Advocate

    Satisfied Customers:

    99
    Partner in national law firm with 20+ years legal experience
  • /img/opt/shirt.png tdlawyer's Avatar

    tdlawyer

    Laywer

    Satisfied Customers:

    53
    Lawyer with 9 years experience in employment related issues.
 
 
 

Related Employment Law Questions