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  • Voluntary Resignation Compensation

    Under Mass and Federal Law and absent an Employee Handbook and Employment contract what final compensation is a salaried professional entitled to after submission of a voluntary resignation.

    Paid wages + The word “wages” shall include any holiday or vacation payments due an employee under an oral or written agreement. (paid to time accrued)

    Kindly advise regarding a "bonus" for work completed the prior year?
    Notice of Resignation was provided after the vebal promise of bonus.

    Kindly advise regarding Stock options. Options are vested but not exercised prior to Notice. Would there be a difference if the company is public or private?

    Thank you.

  • #2
    Voluntary Resignation --Timing Bonus

    I actually found a partial answer to my own question on a blog...

    "This is that time of year when it is natural to think about job search after you get your annual bonus. A lot of people time their departures to fit the annual bonus payout.

    A question asked was if you leave early (prior to payout), can you expect to get all or some of your bonus earned.

    The short answer to the question is no, probably not. Unless otherwise stipulated in your offer letter or employment agreement that your bonus will be prorated upon voluntary departure, your employer is likely not bound to pay you any of your bonus if you leave early."... (article continued)

    http://www.boldcareer.com/blog/archi...us_payout.html.

    So, might one argue since they received an oral promise to receive a bonus from the employer that they are still entitled to it?

    Comment


    • #3
      Oral agreements for compensation are enforceable. But they've typically got to be very specific.

      If you can prove that you had an oral agreement for a specific bonus or a very specific way of calculating the bonus, so there is little doubt about whether its due, how much it should be, whether it is forfeitable and when it must be paid...then you might be able to claim for it.

      But these are rarely specific enough to be found enforceable - hence the reason why most people stay at their jobs until the bonuses are paid.

      Public companies have a market for their stock, so that after the stock is acquired, it can be sold. With private companies, you pay to exercise your options, but you have to wait until there is a market or M&A deal before you get liquidity. So there is much more risk with acquiring private company stock. Whether your options are NSO's or ISO's and whether you have a net exercise provision, will also effect whether you can afford to exercise the shares and wait or whether you will have an immediate tax problem (AMT or otherwise).

      I teach a 15 hour class on options and equity grants, so there is much to discuss, and that last paragraph is only the very tip of one part of it. You should speak with your accountant about your particular tax situation.

      Be advised though that options typically expire shortly after you leave your employer (usually 3 months), so don't delay.

      Phil
      This post is by Philip Gordon, a Massachusetts employment attorney (www.gordonllp.com).

      This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.

      Comment


      • #4
        Voluntary Resignation- Continued

        I'd like very much to take such a class.
        Might you provide a link or any additional information?


        Thank you for your earlier prompt response to my inquiry.
        Enforceable, yes, but really worth enforcing? is always the debate.

        Comment


        • #5
          Generally I do not permit responders to encourage posters to seek their services.

          However, under these specific circumstances if Phil wants to PM you the information I won't object.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

          Comment


          • #6
            Voluntary Resignation

            Apologies for any mis-step- I'll coordinate off-line.
            Thanks again for this fine List.

            Comment


            • #7
              Sorry Catherine. Wasn't attempting to solicit - that's why I encouraged the poster to speak with his own accountant. Just didn't want anyone to think that my reply covered the landscape, because there can be an enormous amount to discuss from a simple question about options.

              Phil
              This post is by Philip Gordon, a Massachusetts employment attorney (www.gordonllp.com).

              This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.

              Comment


              • #8
                I understand, Phil - we've talked about it and I know you know the rules.

                What I was trying to do (guess I was too subtle) was let you know that in this case, since the poster specifically asked you for the information and not the other way around, as long as you provided it off line I was okay with it.
                The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

                Comment

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