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

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

Will there be a return of employment tribunal fees?

The Government is reportedly considering the reinstatement of tribunal fees in respect of employment claims.

View blog

Redundancy: competitive interview processes

In this case, the Respondent’s appeal was unsuccessful. In the first instance, the decision that it unfairly dismissed various claimants following the closure of the school where they worked. The Claimants were unsuccessful in applying for substantially similar positions at a new school that opened at the same site. Read more here.

View blog

Can an application to postpone a hearing be refused?

This case highlights the importance of Claimants obtaining their own medical evidence in such matters especially when it is pivotal to their claim.

View blog

Employer obliged to pay settlement despite employees confidentiality breach

In Duchy Farm Kennels Ltd v Steels the employer was found not to have been relieved of its obligation to pay a settlement sum, despite the former employee having breached the confidentiality clause contained in the settlement agreement.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up