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Following a great deal of debate and ‘Parliamentary Ping-Pong’, the House of Lords on 24 April 2013 finally approved legislation creating a new type of employment status: the ‘employee shareholder’, due to become law on an undetermined date this autumn.
The construction of this new status is that in return for a minimum of £2,000 worth of company shares the newly minted employee shareholder gives up certain key rights, most notably the right to claim unfair dismissal, a statutory redundancy payment and to apply for flexible working.
The Lords’ had previously rejected the new law on the basis that there were insufficient safeguards in place to ensure that an employee fully understood the nature of the bargain being struck. The last minute change … more
