Regulation 2 of The Growth and Infrastructure Act 2013 (Commencement No. 3 and Savings) Order 2013 has been made, providing that the new section 205A of the Employment Rights Act 1996 on employee shareholders comes into force on 1st September 2013.
This section creates a new type of employment status, whereby employees give a bundle of employment rights (most importantly, most unfair dismissal claims and statutory redundancy payments) in exchange for an award of shares worth at least £2,000. There are several safeguards, including a right to a statement detailing the shares, an requirement for the employee to take legal advice, and a 7-day cooling off period.
The law is complex and important, and has been one of the most vibrant topics in my MasterClasses over the last two weeks (see this week's testimonials). Just London and Manchester to go now (more details).
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