An employee-shareholder contract is a type of employment contract that was introduced on 1 September 2013.

Employee shareholders are given shares in the business in exchange for foregoing certain employment rights, including the right to claim unfair dismissal (except where the dismissal is automatically unfair or discriminatory) and the right to receive statutory redundancy pay.

If the employer follows the right procedure, any employee or prospective employee of a company can become an employee shareholder.

Labour plans compulsory employee share ownership

A future Labour government would require all companies with 250 or more employees to give shares to their workers worth...

How rethinking executive pay can act as a catalyst for change

20 Sep 2018

Ahead of the introduction of executive pay ratio reporting regulations next year, Jason Stockwood looks at how CEO pay could...

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Deliveroo plans to make permanent staff shareholders

17 May 2018

Deliveroo has announced that it will make all permanent staff shareholders, in a move worth around £10m.

Gig economy

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Liberal Democrat manifesto: guarantees for EU workers and stricter corporate governance

17 May 2017

The Liberal Democrat Party’s official manifesto has been released today and includes a raft of proposals around employment rights, equality...

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Budget 2016: NI payable on termination payments, tax threshold rises

16 Mar 2016

Chancellor George Osborne revealed few surprises in today’s Budget - on the one...

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George Osborne announcing Shares for Rights in 2012. Photo: Bruce Adams / Daily Mail / REX

Could election spell the end for Shares for Rights?

17 Apr 2015

Chris Tutton looks at how the coalition Government’s controversial Shares for Rights scheme has been used since its introduction, and...

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HMRC has agreed only 350 share valuations in connection with employee shareholder status. Photo: Jeff Blackler/REX

Employee-shareholder contracts rarely used

9 Mar 2015

“Employee shareholder”, the employment status introduced by the coalition Government for workers to waive certain rights in exchange for a...

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Employee share incentives: John Lewis is well known for being owned by its workfoce. Photo: Geoff Moore/REX

The benefits and challenges of employee share incentives

20 Feb 2015

Recent academic research looking into the impact of employee share ownership provides some fairly compelling data to support arguments that...

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Employment status: Church of England clergyman can proceed with employment claims

3 Feb 2014

In DLA Piper’s case report, the Employment Appeal Tribunal (EAT) allowed the appeal of a Church of England minister whose...

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‘Employee-shareholder status’ law could have unintended consequences

7 Oct 2013

The principles behind the Growth and Infrastructure Bill proposals to give employees shares in a firm at the expense of...

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Four employment law changes commencing 1 October 2013

25 Sep 2013

Following a busy summer of employment law changes in June, July and September, there are further new measures coming into...

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Employee-shareholder contracts: five things you need to know

28 Aug 2013

On 1 September 2013, a new kind of employment contract – the employee-shareholder contract – is introduced. Employee-shareholders will benefit...

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Employee-shareholder status comes at expense of employment rights

10 Jun 2013

The Government intends its new legislation to come into force in September, but many employers, workers and unions feel that...

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Lords’ approval of shares-for-rights proposal met with criticism

25 Apr 2013

The decision by the House of Lords to approve the “shares-for-rights” clause in the Government’s Growth and Infrastructure Bill has...

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Shares for rights proposal scrapes through

25 Apr 2013

Finally, after twice rejecting the Government’s legislation introducing the new employee-shareholder status, the House of Lords voted through the proposals...

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