As at the 6 April 2013 employees have the option of a new “owner-employee” contract.
On introducing this new type of employment contract employees would have the option of opting in to the scheme in return for company shares with a value of between £2000 and £50,000. The shares are in exchange for waiving certain employment rights. Employees who are recruited under these terms would no longer have rights to unfair dismissal, redundancy payments or to request flexible working.
Under the scheme employees would receive shares that are exempt from capital gains tax. The target audience are smaller fast growing companies who require a more flexible workforce and could be used as an alternative to casual contracts.
If you would like more information on the new Employee-shareholder contracts contact me today for some free helpful advice.