George Osbourne has made a further move to try to sweeten his proposal to offer shares for workers in exchange for abandoning their employment
rights. The scheme is aimed to help smaller companies grow by helping them to attract higher caliber candidates and also help to protect them from employment claims. Under the scheme potential employees can be offered up to £2,000 worth of shares free of charge and in return they must give up a range of employment rights, including those relating to unfair dismissal and redundancy payments.His plan has just had its second defeat in the House of Lords and continues to come under much opposition. His new proposal to peers includes giving all employees access to free independent legal advice before they sign anything with an employer to remove their employment rights. He has already made moves to protect those that are seen as the most vulnerable and stated that no one who is on job seeker’s allowance would be required to take a job where the employers were offering the shares for rights deals.In a further attempt to convince the House of Lords that the plan is workable, Michael Fallon, the business minister, pointed out,“the company must give the individual a written statement setting out the employment rights that are not associated with this status and detailing the rights attached to the shares. That will include whether the shares have any voting or dividend rights, whether there are rights to have the shares bought back or redeemed, and whether an individual may freely sell the shares to anyone, or if there are restrictions”The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with employment solicitors in Norwich and across the country.