New type of employment contract: employees give up employment rights for shares in co

zzzLazyDaisy

The government has announced plans to introduce a new type of employment contract in which employees give up rights under employment legislation in return for shares in the employer's company.

More info


http://www.hm-treasury.gov.uk/press_91_12.htm

fatou256

I think it is dangerous slope towards exploitation.

zzzLazyDaisy

I agree. I can see all sorts of ways in which this could be abused.

fatou256

I wonder how this will be compatible with EU law ?
I think you we are slowly going back to the old Victorian era

ceh209

If this wasn't on the HM Treasury website, I would have sworn it was April 1st :eek:

zzzLazyDaisy

Quite.

To be honest when I first read about this I thought it was an April Fool's joke. But it is not April so I guess it is fair to say that the Govt isn't joking.

Many EU rights - such as the anti-discrimination laws - apply to workers, rather than being limited to employees.

But there is an argument that even protection against unfair dismissal is embedded in EU law. See this article, for example:

http://www.mulberryfinch.com/blog/employment-rights-unfair-dismissal-and-europe/

Having said that, not so long ago the Govt was proposing to simplify TUPE and also to make small businesses exempt from TUPE altogether. That proposal has now been dropped. I do wonder if someone had a word in their ear about being bound by the EU directive....

EDIT... @ CEH - beat me to it!! :-)

Sambucus_Nigra

Oh good grief. Words fail me.

Notmyrealname

fatou256 wrote: »

I think it is dangerous slope towards exploitation.

Like being able to be dismissed without reason in the first 2 years of employment isn't.

We all might as well go work for agencies and the higher hourly rate they offer. After all, the job security is about comparable.

Sambucus_Nigra

Thinking about it - companies will then be part owned by people who have revenge fantasies about evil bosses who treated them badly and who no longer work there. Interesting conundrum.

zzzLazyDaisy

Sambucus_Nigra wrote: »

Thinking about it - companies will then be part owned by people who have revenge fantasies about evil bosses who treated them badly and who no longer work there. Interesting conundrum.

LOL. Nice thought, but I think that the contracts will contain a clause stating that the 'employee' agrees to sell the shares back to the company on termination of employment. But yes, the ramifications are endless.

Oh well. More work for the lawyers who will have to disentangle these contracts when the disputes arise. Every cloud and all that....:cool:

fatou256

Notmyrealname wrote: »

Like being able to be dismissed without reason in the first 2 years of employment isn't.

We all might as well go work for agencies and the higher hourly rate they offer. After all, the job security is about comparable.

I agree with you .. but i think he going a bit too far here . what next 50 pound M&S vouchers for our right to vote ?!

I think he is trying to implement adrian beecroft recommendation .

same tory party same nasty party. A party for the rich by the rich.