As of 1 September 2013 the much anticipated employee shareholder status is in force, having first been proposed in October 2012. The new type of employee ownership arrangement has provided much controversy due to employees surrendering key employment rights. Please click here and here to see our previous updates on this issue.
The Government has now produced guidance on the employee shareholder status which should prove useful for employers wishing to explore this new concept. Please follow this link to view the guidance: Employee Shareholder Government Guidance
The guidance offers useful information on:
• 6 conditions which must be met to become an employee shareholder
• The key employment shareholder rights
• The general procedure for employers and employees to follow
• Share valuation
As previously reported the employee shareholder status has faced much opposition. It is questionable what take up there will be of the new status with both the British Chamber of Commerce (‘BCC’) and the Department for Business both reporting that they have received no enquiries about the concept. John Wastnage, head of employment and skills at the BCC, commented to the Telegraph ‘We see this as an experiment. But my guess is it will never be more than a niche tool’. We will keep you updated on any developments in this area.