House of Commons votes to reinstate employee-owner scheme

The House of Commons has voted to reinstate the Government's proposal to introduce employee-shareholder contracts. 

This follows the House of Lords' recent vote 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. 

Prior to the House of Lords' vote against the proposal, the Government confirmed in the Budget on 20 March 2013 that the scheme would be introduced on 1 September 2013. 

The proposal will now return to the House of Lords for further debate. 


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