Employment law aspects of participation schemes in the context of dismissal

Besides offering salary and regular emoluments, there may be a desire from the employer to offer staff and/or management an additional ‘incentive’. This can be done, for instance, by allowing an employee to participate in a (cash and/or equity) participation scheme. If the employment ends, this usually also means that the participation must be settled, often distinguishing between a ‘good’ leaver or ‘bad’ leaver departure. In this article, the authors consider the employment law aspects that may play a role in the (manner of) settling the participation scheme in the context of dismissal, such as the closed dismissal and compensation system and the principle of good employment practice.