The Growth and Infrastructure Bill set out proposals for a new type of employee ownership arrangement under which employees would give up some of their employment rights in exchange for shares in the company that employs them.
In our 17th April blog we reported that the proposals that had previously been removed by the House of Lords were reinstated by the House of Commons. However, yesterday, the House of Lords voted for the second time to reject the plans. The term ‘ping pong’ is certainly relevant here.
It seems the future of Employee Shareholder status remains uncertain and will now be re-debated by the House of Commons. However, in an attempt to reach agreement, the House of Commons yesterday listed a number of concessions they are willing to agree to, for example the requirement for written confirmation of the rights the employee will be relinquishing. See https://www.publications.parliament.uk/pa/bills/cbill/2012-2013/0094/amend/pbc0942304m.1219-1220.html for more details.
Continue to follow our blogs for the latest updates and to see how this situation will be resolved.