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New Employment Contracts announced by George Osborne

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The Chancellor of the Exchequer, George Osborne, has announced the introduction of a new type of employment contract, known as an 'owner-employee' contract.

Under this new type of contract, employees give up their UK rights on unfair dismissal, redundancy, and the right to request flexible working and time off for training, and will be required to provide 16 weeks' notice of a firm date of return from maternity leave, instead of the usual 8. In exchange, they are given between £2,000 and £50,000 of shares that are exempt from capital gains tax. 

Legislation to bring in the new owner-employee contract will come later this year so that companies can use the new type of contract from April 2013. The Government will consult on some details of the contract later this month. 

Read more in the government's Press Release.