Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Airport City, Manchester 0844 800 8346

Office 129
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Send us a message
Our Offices

Employee shareholder agreements must include a statement detailing the loss of employment rights

3rd July, 2013

On 1 September 2013, employee shareholder status is due to be implemented as a new employment status through the introduction of the Growth and Infrastructure Bill 2013. The Act will insert a new section 205A into the Employment Rights Act 1996.

For those looking to enter into or offer an employee shareholder agreement the following considerations must be borne in mind:
• An offer of employee shareholder status must include a statement explaining the rights attaching to the shares and the employment rights which would be sacrificed;
• The individual must receive advice about the offer from an independent solicitor, barrister, legal executive, union official or advice centre. The employer must meet reasonable costs incurred in receiving this advice, regardless of whether the offer is accepted; and
• Individuals agreeing to the offer of employee shareholder status will be entitled to a seven-day “cooling off” period from the day legal advice is received.

For further information or advice in relation to managing the new employee shareholder status, please contact Helen Watson on 01244 405565 or send an email to [email protected]

You might also be interested in...

Ethics Guidance – Transparency in Price and Service

16th November, 2018

It is reported that a quarter of all complaints dealt with by the Legal Ombudsman revolve around costs therefore to avoid complaints and confusion, it is important to be clear from the outset. The new Transparency Rules (which the SRA have now confirmed will come into effect on 6 December 2018) require that accurate and relevant information is... Read More »

Aaron & Partners Increases Recommendations in Leading Industry Guide, The Legal 500

5th November, 2018

Aaron & Partners LLP has once again seen improved rankings in The Legal 500 – a comprehensive guide... Read More »

Mental Health and Stress in the Workplace – 3/3

10th October, 2018

In the lead up to World Mental Health Day on 10 October 2018, we have been posting a series of short articles discussing mental health and stress in the workplace. In this final article, we will be providing tips, to employers and employees, for managing stress and dealing with mental ill health in the workplace. Click here to... Read More »

Contact Us