Bonuses and share options are often an important part of a pay package.
It follows that when it comes to negotiating to leave a job these benefits are usually a key battleground. The employer might say no and that it is entitled to withhold the payments. Then what?
Consider your employment contract and any scheme documents
Do these documents explain what should happen to these benefits on termination? Importantly, is the language clear that a specific outcome will follow or is there room for any doubt? Also check for any words that suggest the company or other decision makers have a discretion/choice to decide what should happen.
Your employer should use any discretion reasonably
If your employer or the other decision makers do have a discretion/choice on what should happen to your bonus payment or share options, they should use this rationally and reasonably. This means they should consider your circumstances and, potentially, any similar decisions they have made in the past. This logic should apply whether the scheme rules are said to be governed by English law or a foreign law.
These are common battlegrounds and specialist advice may help to unlock otherwise unexpected benefits.
This blog was written by Ben Lindsay, Solicitor at didlaw.
