Owner-employee contract consultation

 

“Get shares and become owners of the company you work for.” urged Chancellor George Osborne. “Owners, workers and the taxman, all in it together. Workers of the world unite.”

 

In his speech earlier this month, Osborne set out his proposal for a ‘voluntary three-way-deal’, labelled the new ‘owner-employee’ contract.

 

The basics

 

This new type of contract is intended for fast growing small and medium-sized companies.  In return for employers offering between £2,000 and £50,000 worth of shares (capital gains tax free), employees would be expected to waiver various employment rights, including:

 

– Unfair dismissal

– Redundancy

– The right to request flexible working

– The right to request time off for training

 

Women would also have to give 16 weeks’ notice of their date of return form maternity leave, instead of the usual 8 weeks.

 

Consultation

 

The Government is currently in the process of consultation which is due to end on 8th November 2012.  If the legislation is enacted, the new type contract may come into force as early as April 2013.