Home > Legal Articles > Employee Shareholders Scheme is debated by Parliament

Employee Shareholders Scheme is debated by Parliament

Posted on Tuesday, 23rd April 2013 by

Photo Credit: Greg Knapp via Compfight cc

A new employee shareholder scheme is currently being debated by parliament. The idea is an employee is given shares worth between £2000 and £50,000 in their employer which is exempt from Capital Gains Tax. In exchange an employee will give up certain employment law rights including, redundancy pay, the right to claim Unfair Dismissal, right to request flexible working and notice periods to be given in terms of maternity leave.

Proposals have been criticised by the House of Lords and many questions remain unanswered, including what happens if the Employer goes into administration or how the shares for a private limited company will be valued. It is unclear the effect TUPE may have on an Employer Shareholder as presumably they cannot there shares into a new employer but it would be unfair to change the terms and conditions of the employee if TUPE does apply.

Whether the proposals will become law has yet to be seen but it is clear number of practical, commercial and legal issues will need to be overcome before employers are able to start offering the scheme.

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 /

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
  ERROR: 8 - CURL error: