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.

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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House of Lords rejects ‘shares for rights’ proposal for second time

23 Apr 2013

The House of Lords has voted for the second time to reject the Government’s “shares-for-rights” proposal, only weeks after it previously...

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Budget cuts employers’ national insurance contributions

20 Mar 2013

George Osborne’s Budget for “an aspirational nation” has set out important changes for UK employers. The Chancellor today announced that, from...

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2013 employment law changes: 10 things employers need to know

2 Jan 2013

Every year brings with it some important new legislation for employers to negotiate. Whether related to employment tribunals, employee-shareholder contracts,...

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Government publishes response to employee-owners consultation

5 Dec 2012

The Government has published its response to the consultation on employee-owner contracts, under which employers could offer shares to staff...

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