0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

Employee shareholder status proposals become law

26 April 2013

Having been rejected by the House of Lords twice, the Growth and Infrastructure Act 2013 received Royal Assent on 25 April 2013. Under the new law, expected to come into effect this Autumn, an employee may receive shares worth between £2,000 – 50,000 in return for giving up rights to claim unfair dismissal; redundancy, right to request flexible working and to give only 8 weeks notice of return from maternity leave.

In order to gain approval a number of concessions were made to the original proposals including:

  • a 7 day cooling off period
  • protection from detriment for existing workers who refuse to switch to an employee-shareholder contract
  • the individual must have received advice from an independent legal advisor prior to entering into the contract.

Discrimination claims are unaffected so it is questionable whether the provisions will have a dramatic impact on the number of Employment Tribunal claims – especially as senior employees are most likely to take shareholder status and not most prone to bring an unfair dismissal claim.

Related opinions

Evidence of guilt not always required for fair dismissal

This case offers particularly helpful guidance for employers when being faced with employees who are suspected of criminal wrongdoing, albeit care should always be given to ensure allegations are clearly defined and considered on their own merits.

View blog

Flexible working, childcare and indirect sex discrimination – important reminder

The courts have long recognised that, on a societal level, women bear a greater burden of childcare responsibilities than men which can make it more difficult for women to comply with employer requirements for flexible working (known as the ‘childcare disparity’).

View blog

The frontier worker permit

All EU citizens who were not residing in the UK by the end of December 2020 and want to live and work in the UK from 1 January 2021 must apply for a visa as a result of Brexit.

View blog

The UK - India migration deal

The Young Professionals Scheme will make it easier for young Indian citizens and young Britons to access visas.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up