Employment Law blog - Update on Employee Shareholder Scheme

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The Government's insistence on forcing through the Employer Shareholder Scheme (first referred to in our December blog) -against the opposition of all who have read and understand the proposal- is beginning to resemble a Whitehall farce. To placate the House of Lords who have consistently thrown the proposal out the Government have had to make the following concessions:

  • a 7 day cooling off period;
  • an obligation on employers to provide the prospective employee shareholder with a written statement about the shares being offered and the rights that they carry;
  • Protection against detriment for existing employees who refuse to accept an offer of shares;
  • That the prospective employee shareholder must receive legal advice before entering into the contract such advice to be paid for by the employer.

The consensus had been that the scheme was pretty unworkable and not very attractive. These concessions seem to render it less attractive to employers.