The long running saga as to whether ’employer shareholder’ status will come into effect has ended. Following our blog yesterday, the Government introduced a further concession into the Growth and Infrastructure Bill which has now been accepted by the House of Lords.
The further concession offered by the Government was that the employee shareholder contract will be invalid until the employee obtains advice from an independent advisor (solicitor, union etc). In addition the employer has to pay the reasonable costs of such advice even if the employee does not go on to accept the contract.
It is expected that the Bill will come into force in the Autumn of 2013.