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

Home Office Central Registry for modern slavery statement goes live - first universities publish statements

The Home Office recently launched a central registry for modern slavery statements. A growing number of educational organisations, including a number of universities, have published statements on the registry.

View blog

Equal pay at ASDA stores - appeal to the Supreme Court unsuccessful

35,000 workers working in ASDA’s retail business sought to compare themselves to workers at distribution depots for equal pay purposes. Find out more about this Employment Appeal Tribunal.

View blog

Supreme Court confirms that sleep ins are not working time

The Supreme Court judgment represents the conclusion on whether or not “sleep in time” should be classified as working time, when calculating the National Minimum Wage (NMW).

View blog

Mencap case: No entitlement to National Minimum Wage for sleep-in shifts

In a pivotal and much anticipated judgment for the social care sector, the Supreme Court has ruled that workers are not entitled to the National Minimum Wage for all time spent on a sleep-in shift.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up