Further to my blog a few weeks ago regarding the introduction of an Employee-shareholder contract the latest news on this fascinating topic and its shake-up to the world of terms and conditions of employment follows:
The government initially planned to introduce the new type of contract in April 2103. The House of Lords however rejected it on their reading of the Growth and Infrastructure Bill leading to The House of Commons ultimately deciding whether or not to reinstate the Government's proposal on employee shareholder contracts.
The latest news is that the proposed employee shareholder contracts are now likely to come into effect on 1st September 2013. It’s important to note however that any Employers wishing to implement this status will need professional advice and will also have to pay for the prospective Employee to get independent legal advice before agreeing to any employee shareholder contract.
Other concessions include:
· A seven day 'cooling off' period, during which any acceptance of employee shareholder status will not be binding
· Employers must provide a written statement with full details about the shares and the rights they carry
· Any jobseeker who refuses an offer with employee shareholder status will not forfeit their social security benefits
· The first £2,000 of shares will not attract income tax
· Existing workers will be protected from detriment if they refuse to switch to an employee-shareholder contract
Certainly one to keep an eye on as things progress to assess the take up and interest in this new type of contract!
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