Employee Shareholder Contracts
At today's seminar we referred to employee shareholder
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
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
Posted on: 21/03/2013
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.
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