header-logo header-logo

Employees to trade rights

06 September 2013
Issue: 7574 / Categories: Legal News
printer mail-detail

Take-up expected to be highest with start-up companies 

Employees can now trade their rights at work for shares via the Chancellor of the Exchequer’s controversial “employee shareholder” scheme.

In return for at least £2,000 worth of shares in their employer company, employees can give up their rights not be unfairly dismissed in certain circumstances, to statutory redundancy payment, to request time off for study or training, to make a flexible working request, and to give only eight weeks’ notice to return early from maternity, adoption or parental leave.

However, they will still be protected from discrimination-related dismissal, health and safety-related dismissal and automatically unfair dismissal. If returning from parental leave, they can make a flexible working request within 14 days of their return.

Writing in this week’s NLJ, employment law solicitor Roderick Ramage describes the scheme as “harebrained”. 

Ramage warns that the value of shareholdings in unquoted companies is often “illusory rather than real”; that valuing the shares is “an uncertain exercise”; that dismissed employees might claim employment rights on the grounds the valuation was incorrect and the shares are worth less than £2,000; and that employees will lose both statutory redundancy and their shares in the event of insolvency.

From a company owner’s perspective, minority shareholdings dilute the controlling shareholders’ rights and create regulatory complications, he adds.

The scheme, introduced under the Growth and Infrastructure Act 2013, took effect on 1 September. 

Issue: 7574 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll