Lawyer: "Yes, do you want to ask how to retain employees?"
Manager Zhang: "Yes, these employees are so dishonest now. Obviously, the labor contract was signed for three years, and many people ran away in a few months. Can you agree on liquidated damages, and the employee will leave before the expiration of the work period, so that he can pay a high liquidated damages! "
Mande enterprise service lawyers often receive such questions, so let's talk about this problem today.
1. Can I set a penalty for the working period?
No way! According to the law, the items that can be set as liquidated damages in the labor contract do not include that the working hours have not reached the time limit agreed in the labor contract, so it is not legally feasible for the boss to keep employees by setting liquidated damages. Employees who leave 30 days early can pat their asses and leave! Labor law is such a kind of oblique protection for workers. Employees can't stay if they want to leave, and the boss is helpless.
Second, is there any way to legally retain employees?
Keywords: special training
The only thing in the labor law that allows employees to agree on the service period is that the company pays professional and technical training fees for employees. In this case, the company can agree on the service period and the corresponding liquidated damages with the employees. In this case, it can meet the expiration of the service period mentioned by General Manager Zhang, and the employees have to pay a high penalty!
Note: General induction training does not belong to the special training here. Generally, it is required to participate in the training of external training institutions or special training lecturers, and the company has paid for this, and the funds are earmarked for special purposes. This is a special training for the agreed service period!
Third, the application of equity incentive system in the company
In addition to creating an environment suitable for the stable development of employees from the aspects of salary system, personal development and overall atmosphere, the company has also adopted equity incentives to retain employees in recent years. Huawei, Mengniu and Alibaba are all typical examples of successful use of equity incentives!
Using equity incentive to let employees hold shares can create the interests of the company and employees, improve the enthusiasm of employees, enhance their sense of ownership, and thus promote their retention.
(1) When will the equity incentive be carried out?
Many customers come to consult whether they can do equity incentives in the early stage of their business. In fact, equity incentives should not be implemented too early. On the one hand, due to the instability of initial employees and frequent access, it is not conducive to the development of the incentive system. On the other hand, because their equity value is not reflected at the beginning of their business, it is easy to give people the feeling of drawing a pie, which has little effect on retaining employees.
Lawyers suggest that after the company obtains the first round of financing and the equity value is reflected, it can start to implement equity incentives.
(2) What proportion of shares should be used for equity incentive?
The proportion of equity used for incentive is generally between 10%- 15%, so be careful not to use too high a proportion for equity incentive, which will make the equity too scattered and weaken the control of the original shareholders over the company. For the 10%- 15% equity used for equity incentive, the lawyer suggested that it should be held by the major shareholder first, and then taken out to motivate employees. Some companies do not reserve this part of the incentive equity first, but dilute part of the equity from shareholders when they need incentives, which strengthens the difficulty of equity incentives and the complexity of industrial and commercial changes.
(3) How to make an equity incentive plan?
When the company carries out equity incentive, it needs to formulate equity incentive plan. The plan should include the selection of incentive methods, the determination of objectives, the setting of performance evaluation indicators and exercise conditions of incentive objectives, dividend regulations, and the drawing up of the recovery mechanism of incentive equity when employees leave their jobs. Specifically, the company needs to communicate with lawyers on internal details, analyze specific problems, and draw up an incentive plan that conforms to the company's characteristics.
In short, equity incentive is to give employees equity under certain conditions, so that employees feel that I am not only working, but also shares and dividends. The development of the company is closely related to me, and there will be no dividends when I leave! Therefore, when considering leaving, the incentive equity in their hands has become an important weight for them to stay!
Please consult Mande's corporate service lawyer about the specific equity incentives involving your company!
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