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Uso I recently got an offer from an early startup. I actually sat down and read the full clauses properly and now I have some questions lol.
The esops feel like a trap. A significant portion of my CTC is in esops but there’s literally nothing concrete about them in the letter. No exercise price, no grant date, no mention of any board approved esop policy existing. And there’s a line somewhere that says the grant is “at the company’s discretion.” So basically I could join, work for a year, and they could just go “yeah we decided not to grant it.” Has anyone actually had this happen to them? How do I make sure this is locked in before I sign?
The IP clause is pretty crazy. It says anything I create, doesn’t matter if it’s on a weekend, doesn’t matter if it has zero connection to what the company does, belongs to them. I have side projects I’ve been working on for a while now. Does anyone actually negotiate this out or do companies just refuse?
Termination during probation is just a few days notice. That just feels wrong.
Non solicitation for a really long time after leaving. I know non competes are basically toilet paper in India but apparently non solicit clauses are actually enforceable. The duration they’ve mentioned feels really long. Is this standard for startups or are they just pushing their luck?
Arbitration is in a completely different part of the country. If there’s ever a dispute I apparently have to go fight it out somewhere far from where I’d actually be working. Feels very deliberately designed to make sure I never actually raise anything.
I’m genuinely excited and don’t want to blow this by being difficult. But some of this feels like it was drafted to heavily favour the company. Has anyone pushed back on clauses like these? Did the company react badly or is it generally fine to negotiate?
Would love to hear from people who’ve been through this
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ULawyer here. Have handled multiple cases where employees were promised esops in general but were eventually terminated and did not receive any. Your apprehensions are spot on. Do mot move forward until you have a written clarification and confirmation from the company regarding all of these, even on email. A lot of organisations are using this bait and switch technique these days.
Written more about this here https://vikramkushwaha.in/blog/esop-dispute-forfeiture-startup-employees/ -
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