Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee-shareholdersDepartment for Business and Trade (DBT)RedundancyUnfair dismissal

Employee-shareholder contracts rarely used

by Rob Moss 9 Mar 2015
by Rob Moss 9 Mar 2015 HMRC has agreed only 350 share valuations in connection with employee shareholder status. Photo: Jeff Blackler/REX
HMRC has agreed only 350 share valuations in connection with employee shareholder status. Photo: Jeff Blackler/REX

“Employee shareholder”, the employment status introduced by the coalition Government for workers to waive certain rights in exchange for a stake in the company, has scarcely been used, according to figures released by HM Revenue and Customs (HMRC).

In a written answer in Parliament, the Treasury confirmed that HMRC had agreed 350 share valuations in connection with the employee-shareholder status, which is a fraction of the 6,000 companies that the Department for Business, Innovation and Skills (BIS) assumed would take up the new type of contract.

Employee-shareholder take-up
Take-up Companies Employees*
Low 1,960 43,930
Medium 6,000 134,250
High 18,850 421,730
Actual 350 7,830
*assumes average no. of employees.
Source: BIS, 2012.

Employee shareholders give up key employment rights in exchange for shares. They surrender the right to claim most forms of unfair dismissal and to receive statutory redundancy pay.

The new type of contract was controversially introduced in September 2013, despite widespread opposition.

Susie Munro, senior employment law editor at XpertHR, said that the complexity around issuing shares and obtaining an accurate valuation may have put many employers off employee-shareholder status, including those who may have seen it as a way of removing rights from their workforce: “Many employers will instead choose to offer more conventional employee share schemes that do not affect employment rights”.

She added that the figures do not give a full picture of the employee-shareholder take-up, as HMRC’s valuation service is not compulsory: “These statistics still give a good indication that take-up has been low. A company that doesn’t have its valuation approved by HMRC is taking a risk as judging the market value of the relevant shares is difficult.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Phil Hall, special adviser to IFS ProShare, a trade body for the employee share ownership industry, said it would still like to see the employee-shareholder status scrapped because of the widespread negativity that surrounds it and the confusion it has created with conventional forms of employee shared ownership.

“Traditional forms of tax-advantaged share schemes are operated by more than 10,000 companies, benefit more than two million employees and do not require any employees to waive a single right of employment,” he said.

Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Vodafone introduces “pioneering” worldwide maternity policy
next post
Tribunal watch: Unfair dismissal of manager “forced to dress up as Santa”

2 comments

James 10 Mar 2015 - 12:39 pm

I remember ProShare warned about this over and over at the time and they’ve been proved right again – why don’t Government consult properly first?

Pierre Russell 12 Mar 2015 - 9:43 pm

Great quote from Phil Hall highlights the absurdity of this employee shareholder status – thousands of companies are offering SIPs and SAYE schemes and millions of employees sign up because they dont have to give up any rights. In answer to your comment James, Government only consult when it suits them i.e. when they are confident they will get answers supporting their views!

Comments are closed.

You may also like

Fire and rehire: the relocation question

22 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Union rep teacher awarded £370k for unfair dismissal

15 May 2025

Tribunal finds need for degree in redundancy selection...

14 May 2025

Construction workers win compensation claim against defunct employer

9 May 2025

UK-US deal saves ‘thousands’ of jobs in car...

9 May 2025

NHS worker awarded £29k after Darth Vader comparison

8 May 2025

Employment tribunal backlog up 23% in a year

7 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Lincolnshire doctor awarded £250k in race discrimination case

2 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+