Back in February I co-wrote a short article with Robyn Armes about the proposed new employee shareholder status.
The Bill implementing the changes has now, after several amendments, been passed by Parliament and the new status is set to be introduced on 1st September 2013. Prior to the Bill being passed the House of Lords required numerous changes to the scheme, including:
- a person will not lose Jobseekers’ Allowance if they refuse an offer of employment in an employee shareholder role;
- an employer offering employee shareholder status must provide the potential employee with a statement explaining the employment rights that they will lose, and the rights attaching to the shares;
- a person must receive independent legal advice about the offer of employee shareholder status before accepting an offer of employment on that basis, in much the same way that employees must receive independent advice on a compromise agreement. The employer will be required to pay for the advice, even if the offer is rejected; and
- an employee who accepts an offer of employee shareholder status will be entitled to change their mind for up to 7 days after the date upon which they received legal advice.
Employers should now give thought to whether employing staff on an employee shareholder basis will work for them.
If you need any further advice about this subject, please contact Andrew Cooper on 01284 717511 or email@example.com.