Ask the law: Company gave me a 5% share, what should I do?
Employee asks about end-of-service benefits and how to get his 5% share
Question:
I have been working for a private company for two years. Two months ago, the company gave me a 5 per cent share in the company, as a reward for me. This means that I am a 5 per cent partner in the company, but my name is not added in the articles of association.
My question is: I am going to submit my resignation from work, so how is the end-of-service calculated and how do I get the 5 per cent? Will it be before the Labour Court or the civil court? Please advise.
Answer:
To answer such question, I would advise the questioner that:
You might be an employee and a partner of 5 per cent shares at the same time, but it should be documented. Which means that you have to obtain the documents that proves your partnership.
In case you have documents which proves that this 5 per cent constitutes a partnership share, then you have to file a civil case in front of the civil court to prove your partnership where you have to request the amendment of the Article of Association and the same time you request the 5 per cent amount since the date you have been granted such 5 per cent until the date you file your case.
Taking such amounts does not mean that your partnership ends.
This might happen when you request from the court to authorise your retirement from the partnership if you give adequate reasons for your request or may apply to the court to appoint liquidators to carry out the liquidation and partition if you have an interest in such liquidation.
In case the 5 per cent is considered as a bonus, then you have to file your case in front of the Labour Court where you shall request this 5 per cent bonus alongside all the other labour dues. The labour dues in all cases shall be requested in front of the Labour Court.