News

Government guidance on the new Employee-Shareholder Employment Status

  • November 15, 2013
  • By Hunters Law

The Department for Business, Innovation and Skills (“BIS”) has published guidance for employers and employees on the new employee-shareholder employment status.

The new employment status, which was introduced on 1st September 2013, allows new and existing employees to acquire shares in their employer company (or the parent company of their employer) in return for giving up certain employment rights.

The employee must receive fully paid up shares worth at least £2,000 in their employer company (or its parent company) and pay no consideration for those shares.  The employee must agree to enter into an agreement with their employer confirming that they will forfeit the relevant employment rights.

There are a number of legal and administrative issues to be considered and addressed by an employer offering the new employment status and to be understood by an employee considering an offer of the new status.  The BIS Guidance offers preliminary information for employers and employees and can be found here.

If you would like more detailed advice on the legal obligations that are imposed on an employer offering the new employee-shareholder status to new and/or existing employees or you are an employee who would like independent advice in relation to an offer of employee-shareholder status, please contact the partner at Hunters having responsibility for your legal matters, or (for new enquiries) please contact a member of our employment team.

This article is based on the law in force as at 15th November 2013.  Although we endeavour to ensure that the content is accurate and up to date as at that date, it is designed to provide general guidance only and is not intended to be comprehensive or to constitute professional advice.  Specific advice should always be sought, and you should only rely on advice which is given, by reference to particular facts and circumstances. 

Related News

Jul 22, 2021
Gregor Kleinknecht and Constance Tait examine the impact on trademark litigation and provide 10 tips on navigating the post-Brexit era in Managing IP
Jul 16, 2021
Gregor Kleinknecht and Anastassia Dimmek examine the growing threat of zombie firms in Lawyer Monthly
Jul 07, 2021
Richard Baxter and Constance Tait examine a report suggesting that firms with targeted support for ethnic minority workers see benefits
Jun 28, 2021
Richard Baxter discusses UK-EU Data Protection and how adequacy decisions avoid imminent disruption to data flows
Jun 23, 2021
Richard Baxter and Constance Tait examine the recent Burnell v Trans-Tag Ltd case in the High Court
Jun 22, 2021
Anastassia Dimmek discussed the key challenges of protecting clients’ healthy businesses from zombie firms in a webinar hosted by Advoselect
Jun 18, 2021
Richard Baxter and Constance Tait discuss the looming annual returns deadline for employee share schemes
May 18, 2021
Hunters hosted the Withdrawal and The Trade Marks Act 1994 webinar
Mar 17, 2021
Stephen Morrall comments on Uber drivers entitled to minimum wage, holiday pay and pension following the Supreme Court decision in The Sunday Times Driving, The Times and the Daily Mail
Feb 19, 2021
Stephen Morrall comments on Uber losing a landmark Supreme Court battle in the Evening Standard and the Financial Times

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)