Employee Shareholder Contracts
At today's seminar we referred to employee shareholdercontracts.
In yesterday's budget it was announced that employee shareholder contracts would come into force on 1 September 2013 (untillast week it was to be the 6 April).
This announcement may have been premature as the House of Lordshas today voted by 232 - 178 votes to strike out clause 27 of thebill which would have introduced the concept of employeeshareholders.
The bill will now return to the House of Commons where theGovernment will have to decide whether to accept the defeat inwhich case employee shareholder contracts will not happen or try toreintroduce the clause.
This will be a disappointment to the Government who despite thecontroversy that this proposed arrangement had caused werenevertheless intent to pursue it. Criticism of the proposalfor employee shareholders were founded upon the basis that this wasa "bullies charter" whereby employees would be put under pressureto forego basic Employment Law Rights in return for ashareholding.
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.