X hits on this document

PDF document

EMPLOYMENT LAW GUIDE: - page 54 / 134

295 views

0 shares

0 downloads

0 comments

54 / 134

certain performance criteria such as achieving a sales quota, or the company earning certain

revenues, the offer letter should explicitly define the metrics for such performance targets.

4.

Stock Options

The terms under which stock options (or other types of ownership such as restricted

stock, phantom stock, stock appreciation rights) are granted to employees can be complicated

(e.g., vesting timetables, performance measures, buy-back provisions) and are best stated in a

formal agreement between the company and the recipient. The offer letter merely should

state the basics, such as the number of option shares. It should further state that receipt of

stock options is dependent upon the employee’s signing an option agreement and, if

appropriate, contingent upon approval by the Board of Directors or Compensation

Committee.

5. Benefits

Employee benefits, such as health insurance, retirement plans and tuition

reimbursement should not be described in detail in an offer letter. Rather, advise new hires

that eligibility for such benefits is subject to the conditions of the particular benefit plan or

contract.

6.

Conditions of Employment

Employers should include all conditions of employment (e.g., reference checks, post-

offer medical examinations, proof of eligibility to be employed in the United States (the

Form I-9) in the offer letter. If the employer requires a prospective employee to sign a

confidentiality or non-competition agreement, enclose the agreement and refer to it in the

offer letter.

46

Document info
Document views295
Page views295
Page last viewedSat Dec 03 03:06:12 UTC 2016
Pages134
Paragraphs3405
Words33295

Comments