Employee Shareholder Contracts
At today's seminar we referred to employee shareholder contracts.
In yesterday's budget it was announced that employee share holder contracts would come into force on 1 September 2013 (until last week it was to be the 6 April).
This announcement may have been premature as the House of Lords has today voted by 232 - 178 votes to strike out clause 27 of the bill which would have introduced the concept of employee shareholders.
The bill will now return to the House of Commons where the Government will have to decide whether to accept the defeat in which case employee shareholder contracts will not happen or try to reintroduce the clause.
This will be a disappointment to the Government who despite the controversy that this proposed arrangement had caused were nevertheless intent to pursue it. Criticism of the proposal for employee shareholders were founded upon the basis that this was a "bullies charter" whereby employees would be put under pressure to forego basic Employment Law Rights in return for a shareholding.
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.Back to News articles