New Index To Boost Employee Ownership Of Businesses

The Government is introducing a new Employee Ownership Index to encourage more people to invest money in companies that allow their workers to share their profits. According to Business Minister Jo Swinson, the new FTSE-compliant index will highlight the 69 public companies in the UK listed on the London Stock Exchange with 3% or more of their shares owned by their own employees. It is hoped that more employers will harness the advice of employment law specialists and take the opportunity to give their staff a bigger stake in the firms they work for. Ms Swinson said that those that do so tend to be more profitable, create more jobs and are better placed to resist economic disasters. Graeme Nuttall, an expert in employer ownership schemes, set the Government an ambitious challenge with his review last year, Ms Swinson said. Progress has been made but she admits more needs to be done to make businesses aware of the benefits they can bring. Mr Nuttall agrees, but welcomes the progress that the Government has made, such as setting aside £50 million from 2014/15 for tax breaks for companies opting for employee ownership. He said “the bar has been raised” but there is much that still needs to be achieved to make this decade the “decade of employee ownership”. Our Employment solicitors provide advice on a range of major business decisions. For advice on employee ownership, contact the employment law team, call us on 08456 381381 or email employment@ibblaw.co.uk.