Employee Shareholders – what’s the take up going to be?
As of 1st September 2013, employees may now effectively “sell” some of their employment rights to their employer. In return for a minimum £2,000 share in the company for whom they work, an employee can waive the right to a statutory redundancy payment, the right to request flexible working conditions and the right to bring a claim for unfair dismissal (with some exceptions, such as for reasons relating to discrimination and health and safety, which cannot be excluded).
Before entering into the scheme, the employee must receive independent legal advice from a solicitor, and the employer must pay the employee’s costs incurred in obtaining this advice.
To employers, this opportunity may be tempting due to the obvious benefits of having a workforce made up of workers with limited employment rights.
Recent statistics have, however, shown that employees are not all that keen on the idea. This is not surprising considering the reductions in employments rights that have already taken place over the past couple of years – the increase in the requisite qualifying period of employment to bring a claim for unfair dismissal is now 2 years, and the requirement for employees to pay large fees to bring claims in the Employment Tribunal, to name but a few.
It seems that most employees would rather retain their valuable employment rights, particularly when we remain in a period of economic uncertainty, rather than delve into the uncertain world of company investment.
If you are an employer considering employing “employee shareholders” then here at Lennons Solicitors we can offer you the relevant assistance and advice. Call us today to run through the options available to you.
If you are an employee wanting to obtain the required advice having been offered the opportunity to become an “employee shareholder” then we are able to provide you with clear and impartial independent legal advice before you enter into an agreement. Call us today on 01494 773377 to discuss.