Government releases its consultation paper on new 'employee-owner' contracts of employment

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The government has today published its consultation paper on ‘employee-owner’ contracts of employment.

Under the government’s proposals, an ‘employee-owner’ could be given shares in the business in which he or she works with any capital gains on those shares exempt from tax. In exchange, employees would give up some of their key employment rights, including the right to claim unfair dismissal and the right to a redundancy payment.

The time limit for responding to the government consultation is short - the response deadline is 8 November 2012, only three weeks away. It is intended that this new legislation (announced by the Chancellor earlier this month) will be introduced in April 2013.

We will be reviewing the consultation paper in detail and responding on behalf of our members, and we will also explain the government’s proposals to you in a further briefing.

In the meantime, you may want to read the consultation paper for yourself.


Media Team 020 7654 1576

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