Shares for employment rights scheme starts
Chancellor George Osborne’s turkey of a proposal for employees to sell their employment rights for shares became law on 1 September.
There is now a new employment status that allows workers to give up some employee rights, such as the ability to claim unfair dismissal, in exchange for shares in the company.
Anyone can now apply to be an “employee shareholder”, though no-one can be forced to change employment status. Employees must receive at least £2,000 worth of shares in their employer to give up their rights.
In return for a stake in the company, an employee will give up some unfair dismissal rights apart from on the grounds of discrimination and health and safety, any rights to statutory redundancy pay, the statutory right to request flexible working and some rights to request training time-off.
In addition, an employee shareholder will have to give 16 weeks’ notice to their employer if they intend to return early from maternity, additional paternity or adoption leave.
However, there has been no great interest from businesses and employees.
By late June, the government barely had a dozen enquiries from employers.
TUC general secretary Frances O’Grady said; “At best the scheme will be completely ignored and consigned to Parliament’s pointless policies hall of shame.”