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

anamenottaken

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.

A lot of employees think agency workers receive a higher hourly rate than they do.

Though some contractors receive more, most temps do not. Even the right to equal pay with directly employed staff after 12 weeks doesn't put you on an equal footing because pensions are excluded.

MissSarah1972

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.

If you work via an agency you aren't always on more £

getmore4less

the really usefull bit is for the real owners of growing business.

£50k investment with no CGT liabilities


There are plenty of decent employers that pay well this is just another way to pay people more without them getting taxed.

falko89

Things are going from bad to worse in this country, This will be abused left right and centre, I can just see new employment contracts, sign up or get out.

KiKi

This was discussed on the Jeremy Vine show today - signing away your rights (and who can put a value on what redundancy or dismissal would cost you?!) for - I think this was right - not paying CGT on the shares when sold. The employment lawyer they had on the show suggested that this would never come to fruition.

It was a good story - it starts one hour into the show if anyone's interested in listening to it on iPlayer.

paddyrg

This site makes me laugh sometimes. Don't worry Chicken Licken, the sky isn't falling down!!

Ok, so this is an OPTIONAL scheme for NEW employees to take a stake in the future of the company COMPLETELY FREE OF CGT. It could turn out to be an absolutely smashing idea. Employing people is tough for startups as thanks to years of employee rights spreading. This is hardly workhouse stuff, this is the Marxist dream of the employees owning the means of production!!

All this does is create a new category partway in between company director (all the risk, no job protection, etc) and employee (no risk, expensive overheads to cover all the protections). For a startup, the last thing you need is to be 2 yrs into a business and have a mardy employee decide to play the system - better instead if that employee has a real reason to see the company succeed and grow, to have a stake in its future, etc. If the startup does well through their labour, whoopee - they are early shareholders and let's face it, early Apple or Microsoft shareholders are not whining about it.

marleyboy

I imagine any American Company shareholders are not whining about it, I can imagine the local sweatshop owners are rubbing their hands at the very thought of it.

What a bizarre idea, it just proves how out of touch this Government really are with the working class of this Country.

cazziebo

paddyrg wrote: »

This site makes me laugh sometimes. Don't worry Chicken Licken, the sky isn't falling down!!

Ok, so this is an OPTIONAL scheme for NEW employees to take a stake in the future of the company COMPLETELY FREE OF CGT. .

It's optional for existing employees, compulsory for new ones!

It's a ridiculous, badly considered proposition. How many of these companies will see such a rise in share value to get near CGT thresholds? Besides, if employees acquire shares through the HMRC approved SIP scheme their shares are tax exempt anyway. Many employee owned businesses already use SIPs.

Laura Kuenssburg points out the shortfalls more eloquently than I could http://www.itv.com/news/2012-10-08/osbornes-employee-share-scheme-works-for-a-handful-of-firms/

paddyrg

The wording on the release says existing and new startups "can choose to offer...", really not the same as being compulsory.

People are giving up not a huge amount in return - not maternity, not sick pay, etc. As opposed to digging in and being hard to get rid of, they are incentivised to be irreplaceable with an interest in being attractive to keep on.

We've all seen the bedded-in curmudgeons who whine on day in day out dodging work and waiting to die just to draw a salary whilst depressing the office - if you have a stake in the business, you are not going to be that guy. There's nothing so depressing as working around someone who is just serving time with the least effort possible.

marleyboy

Well in all my Years, I have never once considered working the Stock Exchange and don't fancy giving up my working rights just for the privilege.

That might work well for those at the top with their Millions, but for a low paid working class joey like me, am much happier with owning the job security than the brickwork.