Menu
Business

Bonus-promised compensation awarded to Libra Group ex-employee

November 11, 2019 at 10:10am
Edited by

A district court has awarded over €657,000 in compensation including interest to a former employee of Libra Group which is now under liquidation over a promised bonus.

And it is now up to the Official Receiver who is the temporary liquidator of the well-known hotel and tourism group to execute the order.

The specific employee who had a senior management position in Libra filed legal action against the Group’s major shareholder and his companies on the grounds that he was encouraged to offer services beyond his contractual obligations. As well as to display excessive zeal to achieve set goals.  A promised bonus would have been his reward.

Specifically, the employee claimed that Libra agreed, recognized and undertook in writing to pay him the amount of €427,150 (CY Pounds 250,000 at the time of the agreement) as a bonus for a thriving service and as recognition and reward for his services. The amount would have been paid within a year.

As for the defendants, namely Group companies and to a certain extent Libra’s Director and Shareholder Andreas Drakos, they argued they had agreed to continue the employment of the specific employee at Libra subject to approval of the bonus payment by the Board of Directors. However, the Board of Directors did not approve the payment of the bonus.

They also argued that the document of the relevant agreement had been drafted by the plaintiff and given to A. Drakos who signed it. But, according to them, this agreement had no legal force and was not implemented since it was not approved by the plaintiff that is Libra’s Board of Directors.

Andreas Drakos was executive vice president and major shareholder of Libra and Cyprotels, director and shareholder of Astarti, and director of Cads, among the Group’s companies.

The court ruling points out that A. Drakos himself said he had signed the relevant bonus agreement believing that the specific executive would stay in the company for years to come. And that with the company’s financial position improving, then he could also get the promised bonus. However, the plaintiff left the company a few months after the relevant agreement.

The District Court finally accepted the plaintiff’s position that the agreement was not conditional on approval by Libra board’s approval of the bonus payment of the bonus.

 

Read more:

One in two employees leaves Co-op having secured maximum compensation