Home > Legal Articles > Could you become an Employee Shareholder?

Could you become an Employee Shareholder?

Posted on Thursday, 11th July 2013 by
3169262303_de9262f5d8

Photo Credit: galleryquantum via Compfight cc

In September 2013 a new form of employee is due to come into effect. In consideration of an employee becoming an “employee shareholder” (instead of just an “employee”), a company employer will issue or allot a minimum of £2,000 worth of shares to the individual, with any gains made on the first £50,000 of shares being exempt from capital gains tax.

As an employee shareholder the employee will forfeit a number of rights including: The right to make a flexible working request except after return from parental leave, no right to claim for unfair dismissal.  (except in health and safety cases, automatically unfair cases, or where the dismissal is discriminatory). In addition they will have no right to a statutory redundancy payment.

The new type of employee has been controversial and safeguards have been put in place requiring potential employee shareholders to receive independent legal advice (paid for by the employer) and have a cooling off period of 7 days before becoming an employee shareholder.

Andrew is a Commercial & Employment Law solicitor in Leicester. Our Solicitors in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.

Keep up to date with our daily blogs through the Edward Hands & Lewis mobile app, just search Edward Hands on the iPhone or Android store to download our app for free

Talk to our legal team

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

[]
1 Step 1

Quick Quote

Your Nameyour full name
Contact Number
Post Codeyour full name
Your Messagemore details
0 /
Previous
Next

Andrew Robinson - Employment Law
Andrew Robinson - Employment Law
andrew.robinson@ehlsolicitors.co.uk 01509 212 108
Related author articles
Article tags
Map and pin icon
Sign up to our newsletter