The Law Society, working in combination with other concerned parties, has secured major concessions on the government's shares-for-rights proposal. The proposal would allow employers to offer company shares to workers in exchange for them giving up basic employment rights.
In a late amendment to the Growth and Infrastructure Bill, the government accepted that employee share-ownership schemes can only be valid after employees receive independent legal advice. Employers are required to pay for this advice.
Other concessions secured will ensure that no one can be forced to accept such arrangements. Businesses will also need to provide written information to help clarify the value of the shares being offered.
Law Society chief executive Desmond Hudson said:
'Employment rights are not simple commodities. Once lost they cannot be regained unless you leave your employer. That is why it was crucial that those who are offered shares receive independent legal advice and no-one can be forced into these arrangements.'