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How to pause vesting when an employee takes a temporary leave (e.g. parental leave)?
How to pause vesting when an employee takes a temporary leave (e.g. parental leave)?

Employees do not always stay for the full vesting schedule of their options. Keep track of instances when employees go on temporary leave.

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Written by Support Team
Updated over a year ago

Intro

If employees are leaving temporarily (for example, parental leave), Ledgy allows pausing the vesting schedule.


How to pause vesting

In the Equity Plans > Grants page, search for the grant you want to pause and open the Edit modal (look up the employee in the search bar, click to see their options, and then click on the three dots on the right-hand side to Edit the grant).

Within the Vesting section, you'll see an "Add pause Period" button.

If you click the button, you can insert the pause period's start and end date.

Note: you can add more than one vesting pause period if needed by clicking on the "Add period" button in the bottom right corner.

Note: if you don't have an exact end date yet, it is best to add an approximate one for the time being, which can be edited later on if needed.


Specific requirements in terms of vesting breaks

If you have other specific requirements in terms of breaks in the vesting schedule, you can also use our Custom vesting feature.

Go to the Equity Plans > Grants page, and when editing the grant, you will be able to edit the vesting schedule. Click on Add vesting condition > select Time schedule > Custom.

You can insert the vesting pause as a 0% period for a number of months so that the custom vesting schedule and graph would look something like this:


Limitations

  • Vesting pauses can only be used if the grant starts vesting on “Start date” or “Grant date”.

  • Vesting pauses can not be used if the grant starts vesting on “First day of the month” or “Last day of the month”.

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