Thursday, 6 December 2012

UK: Government proceeds with introduction of new 'employee shareholder' employment status

Clause 23 in the Growth and Infrastructure Bill currently before Parliament contains provisions to introduce a new type of employment status originally known as 'employee owner' but now known as 'employee shareholder'. The practical operation of this new status - which involves the surrender of certain employment rights in return for shares with preferential tax treatment - was the subject of a consultation exercise earlier this year, the Government's response to which was published this week: see here (pdf). The consultation revealed little enthusiasm for the proposal; the Government intends to proceed nevertheless and its response provides further information about the operation of the new status.

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