News and Events

New employee shareholders status commencement date

View profile for Chris Dobbs
  • Posted
  • Author

The Government has confirmed that the legislation implementing the highly controversial new employee shareholders status will come into force on 1st September 2013.

The legislation creates a new type of employment status, whereby employees give away a bundle of employment rights (most importantly, most unfair dismissal claims and statutory redundancy payments) in exchange for an award of shares worth at least £2,000. There are several safeguards, including a right to a statement detailing the shares, a requirement for the employee to take legal advice, plus a 7-day cooling off period.

Kate Fretten Employment Partner, says “The law is complex and should you be considering using the new types of employment contract for new employees from 1st September 2013, we recommend you take legal advice to avoid the pitfalls.”

For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.