Hamburger
  • Restricted stock and RSUs

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to restricted stock or RSUs.

    Tax

    Employee

    The employee is taxed on restricted stock upon grant and on RSUs upon vesting (may include personal assets tax).

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or, alternatively, 13.5% on the gross sale price by non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon grant for restricted stock and upon vesting of RSUs.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer also is required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Labor

    Benefits received from restricted stock or RSUs may be considered part of the employment relationship and included in a severance payment if the awards are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her award. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of restricted stock or RSUs ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Stock options

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to option plans.

    Tax

    Employee

    The employee is taxed on the spread upon exercise (including personal assets tax, if applicable). 

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or alternatively 13.5% on the gross sale price by non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon exercise.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer when an option is exercised.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer is also required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Labor

    Benefits received from an option may be considered part of the employment relationship and included in a severance payment if options are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Stock purchase rights

    Securities

    As long as:

    • The offer is not advertised or publicized
    • The stock is not traded in Argentina
    • The offer is limited to employees
    • The offer is intended to compensate employees and not to raise capital, no securities law requirements apply

    Foreign exchange

    There are no foreign exchange restrictions applicable to stock purchase rights.

    Tax

    Employee

    The employee is taxed on the spread upon purchase.

    The employee is subject to a flat tax of 15% on any net gain resulting from the sale of the shares by Argentine Tax residents, or, alternatively, 13.5% on the gross sale price for non-residents.

    Employer

    Withholding & reporting

    Tax withholding and reporting are required upon purchase.

    Deduction

    Argentine subsidiaries are allowed to deduct the amount reimbursed to the parent company for the cost of the benefits if a Reimbursement or Recharge Agreement is in place.

    Social insurance

    Social insurance contributions are generally payable by the employee and employer when the shares are purchased.

    Data protection

    Obtaining an employee's written consent for the processing and transfer of his or her personal data is the most common approach to comply with certain aspects of data protection requirements. The employer also is required to register any database that includes an employee's personal data with the Argentine privacy authorities.

    Benefits received from a purchase right may be considered part of the employment relationship and included in a severance payment if purchase rights are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued participation in the plan. In order to reduce the risk of employee claims, the offer document signed by an employee should provide, among other things, that participation in the plan ceases upon termination of employment, and that the plan and any awards under it are discretionary.

    In light of restrictions on payroll deductions, alternative arrangements may be necessary for contributions to the plan.

    Labor

    Not applicable.

    Communications

    Although plan materials are not required to be translated into Spanish, it is recommended, to ensure that employees understand the terms of their awards. Award materials should be addressed to individual employees in order to avoid securities law requirements.

  • Key contacts
    Guillermo Cabanellas
    Guillermo Cabanellas
    Senior Partner DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Augusto Nicolás Mancinelli
    Augusto Nicolás Mancinelli
    Of Counsel DLA Piper (Argentina) [email protected] T +5411 41145500 View bio
    Dean Fealk is the global contact for Global Equity.
    Dean Fealk is the global contact for Global Equity.
    [email protected] View bio

Stock options

Labor

Argentina

Benefits received from an option may be considered part of the employment relationship and included in a severance payment if options are repeatedly granted to an employee. Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Australia

Upon involuntary termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her option depending upon the terms of grant. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that the vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Austria

Benefits received from an option may be considered part of the employment relationship and included in a severance payment if options are regularly granted to an employee. Upon termination of employment, an employee may be entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding options.

If the Austrian employer has a works council, prior notice should be given to the council before an offer is made.

Belgium

In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option is non-recurring and ceases upon termination of employment, and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding options.

The remark made above in relation to holiday pay on RSU's also applies in relation to holiday pay on stock options. Stock options that are covered by the Act of March 26, 1999 are exempt of social security contributions, hence also of holiday pay.

Brazil

Benefits received from an option may be considered part of the employment relationship and included in a severance payment. Labor Courts tend to consider restricted stock and RSUs as salary, especially when the employee does not participate in any risk of the transaction (eg, if the award is granted for free or with a very reduced cost). Upon involuntary termination of employment, an employee may assert that he or she is entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Canada

There is no "at will" employment in Canada. Generally, if an employee is terminated without just cause, the employee is entitled to reasonable notice of termination of employment at common law unless expressly limited to statutory or other minimums by contract, or pursuant to civil law in Quebec. Therefore, where an employee is offered stock options as a term and condition of employment, if the employee is later terminated without just cause, the employee may claim the benefit of the stock options over the reasonable notice period. This may give rise to an award of damages for the loss of the benefit. To avoid this and to reduce the risk of employee claims, employers should make clear in any employment documents, including contracts, policies and the applicable award plan, that an award of stock options is discretionary, and that, among other things, vesting of an option ceases upon termination of employment (subject to the statutory minimum notice period during which participation may be required to continue or  for which damages may otherwise be awarded). 

Chile

Offering stock options may trigger certain employer obligations and employee claims. For instance, benefits received from an option may be considered part of the employment relationship and included in a severance payment, if such benefits are routinely offered. Upon involuntary termination of employment, an employee may assert that he or she is entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

China

The payment of wages is restricted to cash, and employers are prohibited from paying wages in the form of negotiable securities. Provided that options are not characterized as wages, this restriction should not be problematic. In addition to the concern about wages, benefits received from an option may be considered part of the employment relationship, and may be included in a severance payment. Recent labor legislation may provide employees with greater rights to option benefits. In order to reduce the risk of entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment and that the plan and any awards under it are discretionary.

Colombia

Stock options could be granted as an extralegal benefit of the local company, even if the rights are upon stock of a foreign issuer.

No notice or acceptance of the beneficiary is mandatory. This benefit could be managed as a unilateral extralegal benefit (non-salary payment) to reduce the risks regarding acquired (vested) rights from a labor standpoint in Colombia.
Nonetheless, the main risk is that employees could claim that this benefit in fact is
an acquired right. Appropriate labor provisions in the award terms and conditions and executing the grant through a unilateral document from the employer (instead of a negotiated bilateral agreement), may significantly reduce these risks.

Czech Republic

Option benefits may be considered part of the employment relationship and included in a severance payment if options are repeatedly granted to an employee. In order to reduce the risk of employee entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Denmark

Before January 1, 2019

Stock options are normally regulated by the 2004 Danish Stock Option Act. According to the Act, an employee has unwaivable rights to granted Stock Options in the event that his or her employment is terminated by the company, except in the cases of misconduct. An employee may maintain the right to receive a proportionate share of the RSUs that the employee would have been entitled to, had he or she still been employed at the time of the allotment or at the end of the current financial year. If the Act applies, employers must provide their employees with a translated summary of their rights concerning the stock options. In addition, anti-discrimination rules need to be considered when awarding stock options.

After January 1, 2019

The Danish Stock Option Act was amended in 2018 (applicable from 1 January 2019). The amendments entail that the good and bad leaver limitations no will longer apply allowing for the employer and the employee to freely decide on the terms of Stock Options programs in connection with a termination of the employment. The employer may therefore determine such terms to the effect that non-exercised Stock Options will lapse in connection with a termination of the employment regardless of the reasons for the termination of the employment, ie also regardless of the employee being a "good leaver" according to the current rules.

The amendments also entail it in the award agreement can be agreed that the employer is entitled to repurchase awarded Stock Options at a "fair market value" when the employee leaves the employer.

Ecuador

Although it is not common, option benefits may be considered part of the employment relationship, and may be included in a severance payment, if options are repeatedly granted to an employee. In order to reduce the risk of claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Egypt

Although it is not common, option benefits may be considered part of the employment relationship, and may be included in a severance payment, if options are repeatedly granted to an employee. In order to reduce the risk of employee entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Finland

Option benefits may be considered part of the employment relationship, and may be included in a severance payment, if options are repeatedly granted to an employee. For instance, in some cases concerning unlawful termination, Finnish courts have ruled in favor of employees to include the value of option awards in damages. In order to reduce the risk of employee entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding options.

France

Option benefits may be considered part of the employment relationship and may be included in a severance payment, if options are repeatedly granted to an employee. In order to reduce the risk of employee entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment and that the plan and any awards under it are discretionary.

In addition, equality of treatment's principle between employees need to be considered when awarding options.

If the employee is terminated without cause and consequently loses his or her right to exercise his or her option, the employee will be entitled to specific damages compensating this prejudice.

Germany

Option benefits may be considered part of the employment relationship and, depending on negotiations between the parties, may be included in a severance payment. However, please note there are no mandatory severance payments in Germany. In order to avoid that the option benefits are considered part of the employment remuneration we recommend that they are not granted by the German employer, but by a foreign company, in which case it is also possible to agree that the contract shall be governed by foreign law (eg, option benefits being granted by a US parent company and agreement that the choice of law being US law). If German law governs the agreement, it will not be possible to grant the option benefits on a discretionary basis. In addition, anti-discrimination rules need to be considered when awarding stock options. Also, if German law applies and if one exists, the German works council has to be notified in advance of the planned offering's terms and conditions as the works council has an enforceable co-determination right with respect to the way the option benefits are granted. This can also be avoided if the option benefits are being offered by a US parent company and the transaction documents are governed by US law.

Greece

Option benefits may be considered part of the employment relationship, and may be included in a severance payment if options are repeatedly granted to an employee. In order to reduce the risk of employee entitlement claims, the award agreement signed by an employee should provide, among other things, that the award of an option is not employment compensation, that vesting of an option ceases upon termination of employment and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding options.

Hong Kong

Payroll deductions are not permitted, except with the written request of the employee and approval of the Commissioner for Labor.

Options benefits under common stock options are generally considered as part of the employment relationship. They are normally counted towards wages and all related benefits of employees (including the Mandatory Provident Fund).

Hungary

To decrease the likelihood of employee entitlement claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

India

Although unlikely, in order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary. Stock options are shown separately from the usual income of the employee, as the same is received from the parent company. Keeping the award plan and agreement distinct from other employment benefits and documentation would mitigate the risk of employees potentially claiming the awards as part of the damages calculations made in cases of unlawful termination, or including them in the calculation of severance and retirement benefits.

Indonesia

Offering stock options may trigger certain employer obligations and employee claims. For instance, benefits received from an option may be considered part of the employment relationship and included in a severance payment, if such benefits are routinely offered. Upon involuntary termination of employment, an employee may assert that he or she is entitled to continued vesting and other rights with respect to his or her option. In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Ireland

Option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should be notified in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights
  • The option plan is separate to the employee's employment

In addition, anti-discrimination rules need to be considered when awarding options.

Israel

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

The chances of an employee making a successful claim are also reduced if the award is contingent upon, for instance, the performance of the employee or the company and if the awards are not regularly granted.

Italy

Option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. However, a case by case analysis is recommended. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options. Further specific requirements are provided for, in case of option benefits granted to certain categories of employees of banks, financial intermediaries and asset management companies.

Japan

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, employers should prepare documents concerning the option plan, separately from employment contracts and work rules.

Malaysia

Employment "at will" is not applicable in Malaysia. Generally, if an employee is terminated from employment, the employee has the right to make representations of unjust dismissal to the Industrial Relations Department and such cases are eventually heard by the Industrial Court. Where entitlement to stock options is incorporated as part of the employee's benefits in the employment contract, the employees would generally have a right to make claims for the value of the stock as part of the compensation to be awarded by the Industrial Court. As the Industrial Court of Malaysia has no extra-territorial jurisdiction, there may be difficulties for an employee to make such claims if the stocks are in a foreign parent company. 

In this regard, employers in Malaysia are advised to be cautious about various aspects when issuing stock options or rights to employees. Some of the more critical areas to take note of are:

  • Corresponding with employees via the correct entity. Where stock entitlements are in relation to a foreign based parent company, correspondences about entitlement should be between that foreign company and the employee. This is to ensure that the local employer is not seen as the entity that is making promises for the entitlement that would in turn render the claim enforceable against the local employer
  • Carving out the stock entitlement. The stock entitlement where possible should not be made part of the employment contract but granted through separate agreements or correspondences that are separate and distinct subject to the relevant stock entitlement documents
  • Making forfeiture rights clear. The plan documents for the stock entitlement should always make clear the parties' rights upon termination of employment. This can include forfeiture in the case of dismissal with cause, accelerated vesting upon retirement or termination without cause or even call options exercisable upon termination

Mexico

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

Netherlands

In order to reduce the risk of employee claims, the award agreement signed by employees should provide, among other things, that vesting of an option ceases upon termination of employment and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding options.

If the Dutch employer has a works council, it may be necessary to notify the works council prior to an award. The approval of a works council may be needed to terminate a plan.

New Zealand

In order to reduce the risk of employee claims, the offering document signed by an employee should provide, among other things, that participation in the plan ceases upon termination of employment, and that the plan and any awards under it are discretionary.

It will be fact-dependent as to whether the benefit is deemed as "salary" for employment law purposes and/or "gross earnings" for calculating holiday pay. The benefit should not give rise to additional superannuation / KiwiSaver contribution obligations.

Norway

In general, it is recommended that any awards be included in a separate plan, rather than in the employment agreement. In such cases, it is less likely that the awards will be considered to be the individual rights of the employee. The employer will have more flexibility to adopt changes. In order to reduce the risk of employee claims, the plan should provide, among other things, that participation in the plan ceases upon termination of employment, and that the plan and any awards under it are discretionary. In addition, anti-discrimination rules need to be considered when awarding stock options.

Philippines

In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

Poland

Although uncommon, in order to reduce the risk of employee claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

Portugal

Plan benefits may be considered part of the employee's remuneration. To decrease the likelihood of claims for employee entitlements, in the option agreement evidencing the grant employees should expressly agree that:

  • Participation in the option plan is discretionary and may be revoked at any time by the employer, without the need to present a justification
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

Russia

Although not common, plan benefits may be considered part of the employment relationship and may be included in the calculation of severance or retirement payments. To reduce the risk of entitlement claims, employees should expressly agree in writing that:

  • Participation in the plan is discretionary and
  • Termination of employment will result in the loss of unvested rights

If stock awards are provided by an affiliated company of a Russian employer, it is essential to ensure that the employment agreement entered into between such Russian company and its employee does not contain any references to the stock awards.

Saudi Arabia

Although unlikely, in order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary. Option benefits could possibly be characterized as salary for damages calculations in the event of unlawful termination.

Singapore

In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary. Option plan benefits could possibly be characterized as salary for damages calculations in the event of unlawful termination.

Slovak Republic

Option benefits may be considered part of the employment relationship, and may be included in severance or retirement payments. Although uncommon, in order to reduce the risk of employee claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

South Africa

In order to reduce the risk of employee claims, the award agreement signed by an employee should provide, among other things, that vesting of an option ceases upon termination of employment, and that the plan and any awards under it are discretionary.

South Korea

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

Spain

Spanish labor courts have ruled favorably for employee claims for option benefits. To reduce (not eliminate) the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

Spanish labor courts have added that the benefit derived from the exercised options must be considered salary in cash. Due to the foregoing, the benefit (for the employee) derived from the exercised options must be included in the salary for the purpose of calculation of severance payments.

Sweden

Option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding stock options.

Switzerland

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

Taiwan

Although not common, option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

Thailand

Generally, option benefits will neither be considered part of the employment relationship, nor be included in the calculation of severance or retirement payments. However, to reduce the risk of claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

Turkey

There is a risk that the plan benefits may be considered part of the employment relationship, and included in the calculation of severance payments. In order to reduce the risk of employee claims, employees should expressly agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the forfeiture of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options.

United Kingdom

Option benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of claims, employees should agree in writing that:

  • Participation in the option plan is discretionary
  • Termination of employment will result in the loss of unvested rights

In addition, anti-discrimination rules need to be considered when awarding options and drawing up plan rules.

Venezuela

Although not common, plan benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of entitlement claims, employees should expressly agree in writing that:

  • Participation in the plan is discretionary
  • Termination of employment will result in the loss of unvested rights

Payroll deductions may be problematic.

Vietnam

Although not common, plan benefits may be considered part of the employment relationship, and may be included in the calculation of severance or retirement payments. To reduce the risk of entitlement claims, employees should expressly agree in writing that:

  • Participation in the plan is discretionary
  • Termination of employment will result in the loss of unvested rights