The Law Society has responded to the Department for Business, Innovation and Skills consultation on implementing employee owner status.
Under the proposed scheme, new employee-owners will exchange some of their UK employment rights for rights of ownership in the form of shares in the business they work for, any gains on which will be exempt from capital gains tax.
The Law Society submitted that the complexity and costs associated with offering employee ownership in return for the forfeiture of employment rights is likely to deter employers from recruiting on this basis.