House of Lords again votes to reject employee-shareholder scheme
The House of Lords has voted against the Government's proposal to introduce employee-shareholder contracts.
The House of Lords voted to remove s.27 of the Growth and Infrastructure Bill, which would amend the Employment Rights Act 1996 to create a new tier of employment status: employee owners, who would receive shares exempt from capital gains tax, in return for giving up specified employment rights, including the right to unfair dismissal.
This follows the Government's confirmation in the Budget on 20 March 2013 that the implementation date for the introduction of the scheme would be 1 September 2013.
The House of Commons will ultimately decide whether or not to reinstate the Government's proposal.
- House of Lords debate on employee shareholders Read the House of Lords debate on s.27 of the Growth and Infrastructure Bill regarding employee shareholders on the Parliament website.
- Budget 2013 (PDF format, 3.2MB) Download the complete Budget 2013 document from the HM Treasury website.
- Growth and Infrastructure Bill Read the Bill on the Parliament website.
Also
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