Contract breach?

[ReliableT]

Hello


Some well needed advice from the legal beagles!


Long story short, I was promised company shares well over 12 months ago along with a pay rise which I have received, the Shares are stated in my employment contract but I have not yet received them and when the issue is raised I get fobbed off each time and more recently stated there's no point having shares if the company isn't making money.


Regardless, does this breach the terms of the contract?

[Kati]

Re: Contract breach?

tagging [MENTION=51026]Ula[/MENTION] (she should know) xx

[ULA]

Re: Contract breach?

Does the clause in your contract of employment about shares detail when you would get them, under what conditions and/or criteria and was there a firm offer of shares or was it that you may be entitled to shares.

[ReliableT]

Re: Contract breach?

It states my basic plus shares ( the amount of which is for how many years service provided )and a additional share would be provided on a yearly basis dependent on target/performance.

Does not mention you 'may' be entitled, I was also assured at the time of signing I have these shares but they just need to be written up etc.

its been questioned 3-4 times with the response being waiting on the accountant for the company to be valued etc, now it's been completely dismissed.

at the time of the offer I was giving my notice and promised xyz but it still hasn't happened a year on.

[ULA]

Re: Contract breach?

If you were being given shares as part of your employment they should be under a designated share scheme of which there are several that the company can operate and which have their own criteria for operation and eligibility.

It sounds to me like they have just said you can have shares as part of the employment offer without working out what scheme they are going to operate this arrangement under.

I think you should go back to your employer in writing, refer back to your contract of employment and ask for details of the share scheme in operation and ask for details of the process under which they will be issued.

[ReliableT]

Re: Contract breach?

If you were being given shares as part of your employment they should be under a designated share scheme of which there are several that the company can operate and which have their own criteria for operation and eligibility.

It sounds to me like they have just said you can have shares as part of the employment offer without working out what scheme they are going to operate this arrangement under.

I think you should go back to your employer in writing, refer back to your contract of employment and ask for details of the share scheme in operation and ask for details of the process under which they will be issued.

Its a fairly small business ness with less than 5 employees and there was no mention of a share scheme I was just told that the shares are yours but it could take 2-3 months for everything to be legalised and the shares allocated, 15 months still nothing. I approached them a few weeks ago and they have no completely dismissed the shares stating they can't issue shares because the company isn't making enough money so they would be worthless to you. Not upholding the contract basically and I just want to leave the company without any repercussions

[ULA]

Re: Contract breach?

Seems to confirm my thoughts they offered the shares without setting up the scheme.

As part of any share scheme the documentation should cover what happens to the shares in the event that someone leaves the company. Under the circumstances where there is no scheme paperwork and you have not been issued any shares then I do not believe there will be any repercussions should you decide to leave.