Government expands on share plan

The Government’s proposals to offer employees shares in the company they work for in return for a reduction in their employment rights, have been made clearer.

Chancellor George Osbourne first made the move public at the Conservative Party Conference. Under the plans staff would see their rights to redundancy pay, unfair dismissal, to request training and flexible working surrendered, in return for shares of between £2,000 and £50,000.

Also in the plan are guidelines for staff to be forced to give extra notice if they have an intention to return early from maternity or adoption leave. A consultation period has been launched by the Government lasting until November 8.

Business minister Jo Swinson said:

“We know that engaged employees are more productive and motivated. This scheme increases the options for business and brings greater flexibility to companies and employees in determining their employment relationship.

“By responding to the flexible needs of fast-growing companies, it will help them take people on, providing a real incentive for employers and employees.”

Unite general secretary Len McCluskey added:

“The plan to allow workers to sell their rights is plain stupid. It will actually create more red tape for employers rather than reduce it and will do nothing to boost the economy.

“Britain needs a substantial plan to boost the economy, but instead we get policy made on the hoof and madcap schemes which won’t work.”

IBB’s Employment Team provides advice on the employment aspects of all major business decisions. To contact a member of the team for advice, call us on 01895 207892 or email employment@ibblaw.co.uk