New ‘owner-employees’ will give up their employment rights

Employees will be asked to give up some of their employment rights in exchange for shares in their company and tax-free gains, under a new “owner-employee” employment contract announced by the Government today.

In his speech to the Conservative Party conference, Chancellor George Osborne set out a “voluntary three-way deal”, which would see employees give up such rights as those around unfair dismissal and redundancy.

In return, employees would get between £2,000 and £50,000 worth of shares in the business they work for and would be exempt from paying capital gains tax on any profit made from them.

While the new owner-employee employment contract will be optional for existing employees, firms will be able to choose to only offer this type of contract for new hires from April 2013….

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